Paytm to form advisory committee on compliance, regulatory matters

The committee will be headed by Meleveetil Damodaran, former chairman of India's markets regulator, and "will work closely with the board," Paytm said in a press release

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.