Paytm’s Head of Compliance Dr Srinivas Yanamandra Resigns with Immediate Effect

-Paytm stated that despite Dr Srinivas Yanamandra's resignation, the company remains committed to strengthening its compliance framework.

-In his resignation email, Dr Yanamandra said that his decision to step down was driven by his desire to allocate more time to pursue academic research pursuits.

-In 2024, Paytm too faced a significant challenge when the Reserve Bank of India (RBI) imposed a ban on select services offered by the company.

Dr Srinivas Yanamandra, the head of compliance and a senior management member of One97 Communications Limited, the parent company of Paytm, has resigned with immediate effect. The company announced the development in an exchange filing further stating that Yanamandra will remain in service until February 28, 2025, before being officially relieved of his duties with the company. Dr Yanamandra joined Paytm in April 2022.

The development mentioned is a part of Paytm's ongoing organizational restructuring, where the company introduced compliance leaders across its various business entities. The appointment of Yanamandra was a strategic move to strengthen Paytm's compliance framework.

Before joining Paytm, Yanamandra had a distinguished career in compliance. He served as the chief of Compliance at the New Development Bank in Shanghai from 2017 to 2022. Prior to that, he held senior compliance roles at IDFC FIRST Bank and ICICI Bank, where he accumulated over 11 years of experience. He is also a chartered accountant by training, having achieved national rankings in both the Chartered Accountancy (CA) and Cost Accountancy examinations, showcasing his strong financial and regulatory background. 

"Given this development, we wish to inform you that Dr. Srinivas Yanamandra, Head of Compliance, a Senior Management Personnel of the Company, who joined us in April, 2022, is moving on to pursue other opportunities. He has tendered his resignation vide his email dated December 28, 2024 and he will be relieved from the services of the Company w.e.f. close of business hours on February 28, 2025," Paytm said in the filing.

Paytm stated that despite Dr Srinivas Yanamandra's resignation, the company remains committed to strengthening its compliance framework. It plans to achieve this by recruiting experienced professionals, who will work under the leadership of its current teams to ensure the continued robustness of its compliance structure.

Dr Yanamandra stated in the email that his decision to step down was driven by his desire to allocate more time to pursue academic research pursuits. These pursuits had been on his mind for the past few months, prompting him to take this step in order to focus on them in the near term.

In his resignation email, Dr Yanamandra wrote, "Dear Vijay / Madhur ••• ••• I write this email to convey my intention to resign from the services of Paytm w.e.f. February 28, 2025. I am taking this decision to give myself more time in the near term to pursue certain academic research pursuits that I have been contemplating for the past few months. I thank you for the support provided during my tenure at Paytm and wish you and the company very best for future endeavours. With best regards."

Paytm’s Playbook in 2024

As a pioneer in mobile payments and QR technology, Paytm further expanded its offerings in 2024. The company launched enhanced versions of its Soundbox devices, introduced comprehensive health insurance plans, and streamlined its travel booking features. 

However, fintech as an industry suffered several regulatory headwinds. In 2024, Paytm too faced a significant challenge when the Reserve Bank of India (RBI) imposed a ban on select services offered by the company. The ban was a result of concerns over money laundering and alleged financial irregularities. These issues were linked to transactions worth hundreds of crores between Paytm and its banking arm, which raised red flags for the RBI.

The regulatory action had a notable impact on the market, as Paytm's operations and business model were disrupted. However, the company is likely working to address these concerns and comply with regulatory requirements to regain its full operational scope and restore investor confidence.