Discover the dramatic steps taken by Paytm to tackle regulatory challenges head-on! Dive into the details of their newly formed advisory panel, led by industry stalwart N. Damodaran. Can Paytm overcome the odds and emerge stronger than ever? Find out now!
Formation of Advisory Panel
The team at One97 Communications Ltd, the company behind the popular Paytm payments app, has taken swift action following criticism from regulatory authorities. They’ve set up a special committee, led by N. Damodaran, a former chairman of India’s markets regulator, to address compliance and regulation concerns at Paytm Payments Bank Ltd.
The committee, which includes M.M. Chitale, a respected figure from the Institute of Chartered Accountants of India (ICAI), and R. Ramachandran, a seasoned banker, will collaborate closely with the fintech wallet giant board to bolster compliance efforts.
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This move comes on the heels of the Reserve Bank of India’s (RBI) recent imposition of significant business restrictions on PPBL due to persistent non-compliance with regulatory standards.
Focus Areas of Non-Compliance
The decision to form this panel underscores One97 Communications’ commitment to rectifying issues highlighted by the RBI. The company aims to ensure sustainable growth while upholding a robust regulatory framework.
The RBI’s investigation revealed serious breaches in know-your-customer (KYC) norms, posing risks to customers, depositors, and wallet users. Shockingly, the same PAN (Permanent Account Number) was linked to an alarming number of customers, raising red flags for potential misuse.
Furthermore, the discovery of numerous dormant accounts raised concerns about their potential exploitation for illicit activities. The absence of a robust transaction monitoring system further exacerbated worries about money laundering risks.
In response to these findings, the committee will work diligently to address deficiencies in compliance processes and implement stringent measures to safeguard the integrity of Paytm Payments Bank’s operations.
Bhaarat Bulletin’s Shikha Rai and Paytm have contributed to the above report