One 97 Communications announces former SEBI chief, M Damodaran as head of advisory council

An advisory council headed by former Securities and Exchange Board of India (SEBI) chairman M Damodaran was announced on Friday by One 97 Communications Limited, the owner of the fintech company Paytm. To further strengthen compliance and regulatory matters, the committee will collaborate closely with the board of directors.

“The Board of One 97 Communications Limited announces formation of a Group Advisory Committee chaired by former SEBI Chairman Mr. M. Damodaran, to work with the Board in further strengthening compliance, and regulatory matters,” stated the company in the BSE filing.

The Reserve Bank of India’s (RBI) crackdown against Paytm’s banking division prompted the announcement. The RBI issued a directive in January directing Paytm Payments Bank to stop making deposits or top-ups in client wallets, accounts, FASTags, and other devices after February 29.

Deposits and credit transactions in Paytm Payment Bank accounts have been banned recently by the Employees Provident Fund Organization (EPFO).

The advisory group committee

Meleveetil Damodaran, a retired IAS officer, will serve as the committee’s chairman. He was SEBI’s chairman at one point. In addition, he has presided over influential committees for the RBI and the Indian government. The Indian Institute of Chartered Accountants’ (ICAI) president during that time was Mukund Manohar Chitale. Ramachandran Rajaraman, the third member of the committee, was Andhra Bank’s managing director and previous chairman.

RBI regulation

On January 31, the RBI issued a directive instructing Paytm Payments Bank to cease accepting new users immediately. The non-compliance that audit reports exposed prompted the action.

After February 29, 2024, the RBI further outlawed any additional deposits, credit transactions, or top-ups on any client accounts—aside from interest, cashbacks, or refunds, which could be credited at any time.