One97 Communications, the fintech company that owns the Paytm brand, on Friday announced the formation of a group advisory committee headed by former Sebi chairman M Damodaran as its associate payments banking entities face regulatory action for non-compliance with Reserve Bank of India norms.

The committee will advise the company on strengthening compliance and regulatory matters, according to stock exchange filings.

Paytm Advisory Board Member

MM Chitale, former president of the Institute of Chartered Accountants of India (ICAI), and R Ramachandran, former chairman and managing director of Andhra Bank, were among the panellists moderated by Damodaran.

“The Group Advisory Committee will work closely with the Board of Directors. The Committee will recruit additional members as needed,” the document said.

Chitale also served as a Board Member of the Indian Banking Code and Standards Committee nominated by the Reserve Bank of India (RBI).

Among other responsibilities, Damodaran served as chairman of the high committee of the federal government, Reserve Bank of India and was elected as the EMC chairman of the International Organization of Securities Commissions (IOSCO), the document said.

The committee was formed at a time when Paytm Payments Bank Ltd, owned primarily by Paytm founder and CEO Vijay Shekhar Sharma, is under scrutiny by the Reserve Bank of India (RBI).

On January 31, the Reserve Bank of India directed Paytm Payments Bank to stop accepting deposits or recharges from customer accounts, wallets, FASTags and other instruments after February 29.

The RBI said the action was taken due to the entity’s continued non-compliance with regulatory norms.

The Reserve Bank of India on Thursday said the regulatory action is against Paytm Payment Bank Ltd (PPBL) and Paytm App will not be affected.

“It needs to be clarified that this specific action is against Paytm Payments Bank and not Confusion with Paytm app… The app is not affected by this action.” MPC) meeting.

Taking into account the feedback received by the RBI from the public at large, the RBI will launch a series of FAQs (Frequently Asked Questions) to allay people’s concerns.