Paytm Update: After the major action of RBI against Paytm Payment Bank, parent company One97 Communications Limited has decided to form a Group Advisory Committee under the chairmanship of former SEBI Chairman M Damodaran. Will work with the Board to strengthen regulatory issues as well as improve compliance.
In the regulatory filing filed with the stock exchange, Paytm said that the board of One97 Communications Limited has decided to form a Group Advisory Committee under the chairmanship of former SEBI Chairman M Damodaran. This committee will include former ICAI President M.M. Will be Chitale (MM Chitale). Apart from these, former chairman and MD of Andhra Bank R Ramachandran will also be in this committee. The company said that additional members can also be included if needed.
On January 31, 2024, RBI took major action against Paytm Payments Bank and banned the addition of new customers. Paytm is accused of committing irregularities regarding banking regulation. Also, despite repeated requests, there was lack of compliance. After February 29, 2024, no customer will be able to deposit money or do credit transactions in Paytm Wallet nor will be able to top up Paytm Wallet. The balance amount remaining in the customer's wallet can be used till it is exhausted.
Earlier on February 8, 2024, RBI Governor Shaktikanta Das said on the action taken against Paytm Payment Bank that this is a supervisory action against Paytm Payment Bank. Because the company was not complying with the regulatory rules. He said that RBI gives sufficient time to every regulated entity to complete compliance. Sometimes more time is also given. He said that we are responsible regulators, if the rules were being followed then why would we take such action? However, in the next one week, RBI will issue FAQs to eliminate the confusion among customers regarding this entire matter. Paytm's stock has been witnessing a huge decline since the RBI action.
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