One97 Communications, which owns the fintech Paytm, has decided to form an advisory committee following the latest Reserve Bank of India (RBI) directive regarding its banking arm, Paytm Payments Bank Limited (PPBL). This advisory body will provide consultations to enhance compliance and navigate the regulatory challenges faced by the fintech.

The company has onboarded former Securities and Exchange Board of India (SEBI) chairman Meleveetil Damodaran, who has been instrumental in compliance-related reforms of market regulators during his tenure. 

The other members of the advisory body include Mukund Manohar Chitale, former president of the Institute of Chartered Accountants of India (ICAI) and former chairman of the National Advisory Committee on Accounting Standards (NACAS), along with veteran banker Ramachandran Rajaraman, former chairman and managing director of Andhra Bank.

One97 Communication said in a stock market filing, on Friday, that the advisory body will work closely with the board adding that the committee may induct more members if required to work smoothly. It further added that the company is committed to driving sustainable business growth while adhering to a regulatory and compliance framework.

Central Bank, on January 31, directed the PPBL to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. 

In another development, as per the various reports two independent board members of the fintech have left the company amid the crisis. Shinjini Kumar, a former Bank of America and PricewaterhouseCoopers (PwC) executive, resigned in December and Manju Agarwal, a former deputy managing director of State Bank of India (SBI) has also resigned from the company, The Economic Times Reported.

The Central Bank (RBI) will reportedly meet with the National Highways Authority of India (NHAI) and the National Payment Corporation of India (NPCI) next week to finalise the modalities for migrating merchants and consumers from the Paytm Payment Bank.

Meanwhile, the actions taken by the apex bank have had significant repercussions on the company, affecting both its external operations and internal dynamics. Vijay Shekhar Sharma, the founder of the country's largest fintech company and part-time chairman of its banking arm, PPBL, has already engaged with Finance Minister Nirmala Sitharaman, urging the ministry to intervene in the situation.

According to reports from ET, faced with mounting pressure from the RBI, Sharma was contemplating stepping down from his position and potentially rebranding PPBL by removing 'Paytm' from its name, but the plan was not presented to the regulator.