Paytm’s advisory panel chief says yet to delve deep to identify any issue with firm

PTI, Feb 26, 2024, 8:10 AM IST

Representative image (Source: PTI)

New Delhi: An advisory committee, set up by Paytm owner One97 Communications after the Reserve Bank’s action on its payments bank business, is yet to have a deeper engagement with the company to identify any issue, head of the panel and former chairman of Sebi M Damodaran said on Sunday.

“We are an external advisor. At this point they (Paytm) are dealing with RBI,” Damodaran said in response to a question on the impact on Paytm with regard to RBI’s January 31 order on Paytm Payments Banks Limited (PPBL).

As per the January 31 order, the RBI asked PPBL to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29. Later, the central bank extended the deadline till March 15.

Paytm on February 9 announced setting up of a group advisory committee headed by Damodaran. The committee was set up to advise the company on strengthening compliance and on regulatory matters.

When asked about his prima facie views on the issues that may have an impact on the fintech firm, he said, “It is too early. We have not got to that stage.”

Damodaran was speaking at the release of his biography ‘The Turmeric Latte’ compiled by one of his former colleagues in Sebi (Securities and Exchange Board of India).

During a panel discussion at the event, when he was asked about his views on the functioning of Sebi at present, Damodaran said the capital markets regulator has bandwidth problems with respect to the large amount of issues that it has to handle.

“Sebi has a huge challenge. The bandwidth seems inadequate to tackle the large number of issues that they have to tackle. In the process, it sometimes feels like they are biting more than they can chew,” Damodaran said.

The book, curated by former Tripura cadre IAS officer Dinesh Tyagi who last served as Managing Director of CSC E-Governance, also has contributions from former colleagues of Damodaran including former mines secretary Sushil Kumar.

The book also mentions about ‘threats’ received by Damodaran, when he was the joint secretary in the information and broadcasting ministry, for some decisions taken by him.