In response to recent regulatory challenges, Paytm Announced on Friday the formation of an advisory committee focused on compliance And regulatory matters, This step comes after reserve Bank of India (RBI) ordered Paytm’s banking affiliate to shut down most of its operations due to compliance issues.
According to a Reuters report, the committee will be chaired by M Damodaran, former chairman of India’s markets regulator, and is expected to work in close coordination with Paytm’s board. M Damodaran, former chairman of the market regulator of India, will lead the panel. , who will ‘work closely with the board,” Paytm revealed in a statement.
Last week’s RBI directive had directed Paytm Payments Bank to halt its business operations, including deposits, credit products and its widely used digital wallet, till February 29 citing “persistent non-compliance”. . Paytm Payments Bank plays a vital role in facilitating deposits for Paytm users and enabling them to conduct transactions through the app.
Additionally, Paytm has faced an Enforcement Directorate (ED) investigation over allegations of violation of foreign exchange regulations, which the company has termed as “baseless and factually incorrect”.
The payments firm, competing with giants like Walmart’s PhonePe and Google, is a popular choice among Indian consumers for a wide range of transactions, from grocery shopping to purchasing household goods.
After the RBI action on January 31, Paytm’s shares have seen a huge fall. Shares of Paytm’s parent company One97 Communications Ltd took a huge hit, falling by more than 15% in just two days. The stock price fell 6.09% to close at Rs 419.85 on BSE, while intraday it closed at Rs 408.30, down 8.67%. Similarly, shares fell 6.15% to Rs 419.15 on NSE, while the day’s low fell 8.20% to Rs 410. The two-day fall wiped off Rs 4,870.96 crore from its market valuation on the BSE.
The stock’s decline was part of a broader trend that saw the company’s market valuation erode by more than Rs 20,471.25 crore following the RBI action that began on February 1.
RBI Governor Shaktikanta Das recently commented on the situation, saying there were no systemic concerns, but stressed that the action against Paytm was necessitated due to the company’s non-compliance.
(with inputs from agencies)
According to a Reuters report, the committee will be chaired by M Damodaran, former chairman of India’s markets regulator, and is expected to work in close coordination with Paytm’s board. M Damodaran, former chairman of the market regulator of India, will lead the panel. , who will ‘work closely with the board,” Paytm revealed in a statement.
Last week’s RBI directive had directed Paytm Payments Bank to halt its business operations, including deposits, credit products and its widely used digital wallet, till February 29 citing “persistent non-compliance”. . Paytm Payments Bank plays a vital role in facilitating deposits for Paytm users and enabling them to conduct transactions through the app.
Additionally, Paytm has faced an Enforcement Directorate (ED) investigation over allegations of violation of foreign exchange regulations, which the company has termed as “baseless and factually incorrect”.
The payments firm, competing with giants like Walmart’s PhonePe and Google, is a popular choice among Indian consumers for a wide range of transactions, from grocery shopping to purchasing household goods.
After the RBI action on January 31, Paytm’s shares have seen a huge fall. Shares of Paytm’s parent company One97 Communications Ltd took a huge hit, falling by more than 15% in just two days. The stock price fell 6.09% to close at Rs 419.85 on BSE, while intraday it closed at Rs 408.30, down 8.67%. Similarly, shares fell 6.15% to Rs 419.15 on NSE, while the day’s low fell 8.20% to Rs 410. The two-day fall wiped off Rs 4,870.96 crore from its market valuation on the BSE.
The stock’s decline was part of a broader trend that saw the company’s market valuation erode by more than Rs 20,471.25 crore following the RBI action that began on February 1.
RBI Governor Shaktikanta Das recently commented on the situation, saying there were no systemic concerns, but stressed that the action against Paytm was necessitated due to the company’s non-compliance.
(with inputs from agencies)
