India's Paytm to set up advisory panel on compliance, regulatory matters

India's Paytm to set up advisory panel on compliance, regulatory matters

FILE PHOTO: Paytm app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

Paytm will form an advisory committee on compliance and regulatory matters, the payments firm said on Friday, a week after India’s central bank ordered its banking affiliate to wind down.

Former chairman of India’s markets regulator, M. Damodaran, will lead the panel, which “will work closely with the board”, Paytm said.

Last week, the Reserve Bank of India (RBI) ordered Paytm affiliate Paytm Payments Bank to shut most of its business, including deposits, credit products and its popular digital wallets, by Feb. 29, citing “persistent non-compliance.”

The bank is a regulated entity that accepts the deposits for the Paytm users to then make transactions on the app.

Paytm has also drawn scrutiny over foreign exchange rule violations from India’s anti-fraud agency. The company has said that the claims were “unfounded and factually incorrect”.

The payments firm competes with the likes of Walmart’s PhonePe and Google, and is widely used for everything from buying groceries to household items.

Since the RBI action on Jan.31, Paytm stock has lost 45% of its value, eroding $2.6 billion of shareholders’ wealth.

Reuters

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