Paytm Sets Up Advisory Committee To Strengthen Governance Issues

The committee will be headed by M Damodaran, former chairman, the Securities and Exchange Board of India (SEBI), the firm informed via an exchange filing

Paytm parent, One97 Communications Ltd (OCL), said on Friday that it is establishing a three-member group advisory committee to help strengthen the corporate governance issues in the company. The committee will be headed by M Damodaran, former chairman, the Securities and Exchange Board of India (SEBI), the firm informed via an exchange filing. 

The committee will work with the OCL board to strengthen the compliance and regulatory issues, reported Business Standard. Additionally, Paytm Payments Bank also appealed a request for proposal (RFP) from external auditors. The announcement follows the Reserve Bank of India (RBI) imposing a ban on the banking wing of Paytm from doing most of its operations after February 29, 2024, citing ‘persistent non-compliance’. The regulator barred the Paytm Payments Bank from allowing customers to deposit funds and do fund transfers after the deadline. 

The committee also includes Mukund Chitale, former President, the Institute of Chartered Accountants of India, and Ramachandran Rajaraman, earlier Chairman and Managing Director, Andhra Bank, and a member of the Central Vigilance Commission’s advisory board. The firm informed that more members will be added to the committee if needed.

“The company’s management is committed to driving sustainable business growth while adhering to a regulatory and compliance framework,” the fintech’s parent company, OCL, said. At the same time, Paytm Payments Bank also floated a request for proposal (RFP) from external auditors seeking an audit of the firm’s compliance processes.

The report also claimed that discussions regarding partnerships for nodal accounts between Paytm and banks were about to be concluded, citing anonymous sources. However, the names of the banks have not been disclosed yet.

Notably, the banking regulator took disciplinary actions against Paytm Payments Bank recently citing issues regarding KYC (know your customer) violations, fake compliance submissions, and an overall disregarding attitude towards compliance and transparency.