A former regulator, CA and banker: Meet the people Paytm picked to solve the mess it's in

Fintech firm One97 Communications, which owns Paytm brand, is setting up a group advisory committee headed by former Sebi Chairman M Damodaran to fix the mess its payments bank entity is currently in for non-compliance with RBI norms.

The committee will advise the company on strengthening compliance and on regulatory matters, according to a stock exchange filing. Damodaran will be flanked by fomer President of the Institute of Chartered Accountants of India (ICAI) M M Chitale and former Chairman and Managing Director of Andhra Bank R Ramachandran.

So who are these people?

M Damodaran
The former Sebi chief is credited for improving corporate governance practices in the country’s securities market when he headed the market regulator from early 2005 to February 2008. A banker-turned-bureaucrat, Damodaran belonged to the IAS cadre in Tripura.

MM Chitale
The veteran CA saved Gujarat’s Madhavpura Mercantile Cooperative Bank from collapse when the Ketan Parekh scam unravelled. Chitale refused to accept any fees for his services.MMCB owed almost Rs 665 crore to 268 cooperative banks and was allowed to pay it back in instalments over three years.

R Ramachandran
A post graduate in science and a post graduate diploma holder in financial management, the former banker worked in Indian Bank for almost 35 years. He joined the bank as a probationary officer and then rose to become the general manager there.

Subsequently, he was promoted as executive director of Syndicate Bank in 2008. He took charge at Andhra Bank in September 2010.

Bankers say that he is better known for his networking skills. This has helped him in maintaining good ties with policy makers.

The setting up of the committee comes at a time when Paytm Payments Bank Ltd, majorly owned by Paytm Founder and CEO Vijay Shekhar Sharma, has come under scrutiny of RBI. On January 31, RBI directed the Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29. On January 31, RBI directed the Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29.

RBI, on Thursday, said the action was taken due to persistent non-compliance by the entity with regulatory guidelines.