Paytm Goes All Out to Impress RBI with Advisory Panel and Auditors

Paytm Payments Bank has initiated a request for a proposal to engage external auditors to evaluate the bank’s compliance and know-your-customer processes, according to reports.

This move follows closely on the heels of the fintech company’s formation of a panel, led by a former Sebi chief, tasked with collaborating with its board to bolster compliance efforts amid ongoing regulatory challenges.

The newly established panel, chaired by Meleveetil Damodaran, former head of the Securities and Exchange Board of India, was announced by Paytm parent company One97 Communications Ltd. in a filing on Friday. Comprising three members, including the former head of a prominent chartered accountant body and the ex-chairman of a state-run bank, the panel underscores the company’s commitment to enhancing regulatory adherence.

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In a statement, One97 emphasized its management’s dedication to driving sustainable business growth within the bounds of a robust regulatory and compliance framework.

The heightened scrutiny comes in the wake of the Reserve Bank of India’s recent directive to Paytm Payments Bank Ltd., a subsidiary of billionaire Vijay Shekhar Sharma’s fintech conglomerate, ordering it to cease accepting deposits in its accounts or popular digital wallet after February 29. This regulatory intervention has dealt a significant blow to the founder’s aspirations.

Shares of One97 have experienced a sharp decline, plummeting by over 40% since the unexpected action taken by the Reserve Bank of India.