Paytm Advisory Committee Engages with Company on RBI Action

An advisory committee, established by Paytm owner One97 Communications in response to the Reserve Bank of India's (RBI) action on its payments bank business, is actively engaging with the company on matters related to the panel's terms of reference. The committee is headed by former Securities and Exchange Board of India (Sebi) chairman M Damodaran.

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Committee Engages with Paytm

In response to a query about his involvement with Paytm, Damodaran stated that the committee has been engaging with the company on matters pertaining to the Advisory Committee's terms of reference. He emphasized that the panel members serve as external advisors and that Paytm is currently focused on addressing the concerns raised by the RBI.

RBI's Action and Paytm's Response

On January 31, the RBI directed PPBL Paytm Payments Bank Ltd to cease further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, effective February 29. The deadline was later extended to March 15. In response, Paytm announced the formation of a group advisory committee led by Damodaran on February 9. The committee's purpose is to provide guidance on enhancing compliance and regulatory matters.

NPCI's Role in Customer Migration

Meanwhile, the Reserve Bank has instructed the National Payments Corporation of India (NPCI) to explore the possibility of migrating Paytm Payments Bank customers using the UPI handle @paytm to 4-5 other banks. This move aims to prevent disruptions in the payment ecosystem.

Damodaran's Views on Sebi's Functioning

During the release of his biography titled "The Turmeric Latte," Damodaran shared his perspectives on the current functioning of Sebi. He expressed concerns about the capital markets regulator's bandwidth limitations in handling the substantial number of issues it faces. Damodaran suggested that Sebi may be taking on more than it can effectively manage.

Book Highlights Damodaran's Career and Challenges

The book, compiled by former Tripura cadre IAS officer Dinesh Tyagi, features contributions from Damodaran's former colleagues, including former mines secretary Sushil Kumar. It also sheds light on the threats Damodaran faced during his tenure as joint secretary in the information and broadcasting ministry due to certain decisions he made.

The advisory committee established by Paytm is actively engaging with the company to address the terms of reference and regulatory compliance matters. Meanwhile, the RBI's directive to NPCI aims to ensure a smooth transition for Paytm Payments Bank customers. Damodaran's insights on Sebi's challenges and his experiences provide valuable perspectives on the regulatory landscape in India.