Hit by RBI restrictions, Paytm to set up advisory committee headed by ex-SEBI Chairman M Damodaran

This move comes as its associated payments bank entity encounters regulatory scrutiny for failing to adhere to RBI guidelines.

The committee's role, as outlined in a stock exchange filing, is to provide guidance to the company on enhancing compliance and addressing regulatory concerns.

Former President of the Institute of Chartered Accountants of India (ICAI) M M Chitale and former Chairman and Managing Director of Andhra Bank R Ramachandran will be also in the panel.

"The Group Advisory Committee will work closely with the board. The committee will induct additional members, as necessary," the filing said.

Chitale's has experience serving as a governing council member of the Banking Codes and Standards Board of India as a nominee of the Reserve Bank of India (RBI).

Damodaran has chaired several high-powered committees for the Union government and the RBI.

He was also elected Chairman of the EMC of the International Organisation of Securities Commissions (IOSCO), as mentioned in the filing.

The formation of this committee coincides with Paytm Payments Bank Ltd, predominantly owned by Paytm Founder and CEO Vijay Shekhar Sharma, facing scrutiny from the RBI.

On January 31, the RBI directed Paytm Payments Bank to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29.

The RBI cited persistent non-compliance by the entity with regulatory guidelines as the reason for this action.