Paytm Payments Bank Issue: Advisory Committee Yet to Engage Deeply

The advisory committee formed by Paytm owner One97 Communications after the Reserve Bank of India's (RBI) action on its payments bank business has not yet engaged deeply with the company to identify any issues, according to the panel's head and former chairman of the Securities and Exchange Board of India (Sebi), M Damodaran.

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External Advisor

Damodaran clarified that the committee serves as an external advisor and that Paytm is currently engaged in discussions with the RBI regarding the impact of the central bank's January 31 order on Paytm Payments Banks Limited (PPBL).

RBI's Order

The RBI's order directed PPBL to cease further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards after February 29. The deadline was later extended to March 15.

Advisory Committee Formation

In response to the RBI's order, Paytm announced the establishment of a group advisory committee headed by Damodaran on February 9. The committee's purpose is to provide guidance to the company on strengthening compliance and regulatory matters.

Early Stage

When asked about his initial views on potential issues affecting the fintech firm, Damodaran stated that it was too early to comment as the committee had not yet reached that stage of its engagement.

Damodaran's Biography

Damodaran was speaking at the release of his biography titled "The Turmeric Latte," compiled by one of his former colleagues at Sebi. The book launch event included a panel discussion during which Damodaran shared his perspectives on the current functioning of Sebi.

Sebi's Bandwidth Issues

Damodaran expressed concerns about Sebi's bandwidth limitations in handling the substantial number of issues it faces. He noted that the regulator sometimes appears to take on more than it can effectively manage.

Book Contributions

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