Is RBI having a change of heart for Paytm? Mint Street may review February 29 deadline

Is a reprieve coming Paytm's way? The Reserve Bank of India is considering a review of the February 29 deadline for Paytm Payments Bank, the fintech's lending arm, provided customer deposits stick.

The central bank is expected to review the matter, according to an NDTV Profit report, next week.

Paytm has formed a panel, headed by the former chief of the country’s capital markets regulator, to work with its board for strengthening compliance as it battles regulatory strictures.

The group advisory committee will be headed by Meleveetil Damodaran, who formerly headed the Securities and Exchange Board of India, Paytm parent One97 Communications said in a filing Friday.

The three-member panel also comprises the former head of a prominent chartered accountant body and the ex-chairman of a state-run bank.

Also read: Centre examining FDI flow from China in Paytm Payments Services: Report

One97’s “management is committed to drive sustainable business growth, while adhering to a regulatory and compliance framework,” it said in the statement.

Paytm’s application to qualify as a payments aggregator is still pending before the RBI, which in 2022 also barred the company from onboarding new online merchants.

The RBI approves such applications if they fulfill regulatory requirements and match compliance norms it has set.