NEW DELHI: The board of One97 Communications Ltd, the parent company of Paytm, has formed a panel chaired by N Damodaran, former chairman of markets regulator SEBI, to provide guidance on compliance and regulation matters.
The development comes after the Reserve Bank of India (RBI) barred the digital bank from providing banking services including accepting fresh deposits from the customers due to non-compliance issues.
The committee, consisting of MM Chitale, a former president of the Institute of Chartered Accountants of India (ICAI) and a former governing Council Member of the Banking Codes and Standards Board of India, as well as banker R Ramachandran, a former Chairman and Managing Director of Andhra Bank, will collaborate with One97 Communications’ board to bolster compliance and regulatory frameworks.
One97 Communications emphasised its commitment to driving sustainable business growth while operating within a strict regulatory and compliance framework.
“The company’s management is committed to drive sustainable business growth, while adhering to a regulatory and compliance framework,” the company said in the exchange filing.
Paytm has been accused of violating regulatory guidelines related to know your customer (KYC), anti-money laundering measures, and failure to maintain arms length from promoter group entity, One97 Communications.
The banking regulator began its scrutiny in 2018, and last year in October, RBI imposed a monetary penalty of Rs 5.39 crore for non-compliance with KYC regulations.