Thursday, February 22, 2024
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Paytm Advisory Panel: Regulatory and Compliance Issues | Indian Business News – Times of India

In response to recent regulatory challenges, pay announced on Friday the formation of an advisory committee focused on compliance and Regulatory issues. This movement occurs after Reserve Bank of India (RBI) ordered Paytm’s banking subsidiary to cease most of its operations due to compliance issues.
According to a Reuters report, the committee will be chaired by M Damodaran, former chairman of India’s markets regulator, and is expected to work in close coordination with Paytm’s board of directors. Former chairman of India’s markets regulator M Damodaran will head the panel. , which will ‘work closely with the board,'” Paytm revealed in a statement.
Last week’s RBI directive directed Paytm Payments Bank to stop its business operations, including deposits, credit products and its widely used digital wallets by February 29, citing “persistent non-compliance.” Paytm Payments Bank plays a crucial role in facilitating deposits for Paytm users by allowing them to make transactions through the app.
Additionally, Paytm has faced scrutiny from the Enforcement Directorate (ED) over allegations of violations of foreign exchange norms, which the company has termed “baseless and factually incorrect.”
The payments company, which competes with giants such as PhonePe and Walmart’s Google, is a popular choice among Indian consumers for a wide range of transactions, from grocery shopping to household items.
Following the RBI’s actions on January 31, Paytm shares have witnessed a significant drop. Shares of One97 Communications Ltd, the parent company of Paytm, saw a sharp decline, falling over 15% in just two days. The stock plunged 6.09% to close at Rs 419.85 on the BSE, with an intraday low of 8.67% at Rs 408.30. Similarly, on the NSE, the stock fell 6.15% to Rs 419.15, with the day’s low of 8.20% at Rs 410. This two-day crash wiped Rs 4,870.96 crore off its market valuation on the BSE.
The stock drop was part of a broader trend that saw the company’s market valuation decline by over Rs 20,471.25 crore following the RBI crackdown, which began on February 1.
RBI Governor Shaktikanta Das recently commented on the situation and said there are no systemic concerns, but emphasized that the action against Paytm was necessitated by the company’s non-compliance.
(With contributions from agencies)

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