‘Too early’: Paytm’s advisory panel chief M Damodaran on identifying issues with fintech firm 

The advisory committee, formed by Paytm parent company One 97 Communications Ltd. after the Reserve Bank of India’s (RBI) action on the fintech firm’s payments bank business, has yet to identify any issue, head of the committee and former Securities and Exchange Board of India (Sebi) chairman M Damodaran told news agency PTI.

While responding to a question w.r.t. RBI’s January 31 order on Paytm Payments Bank Limited and its impact on Paytm, Damodaran said at this point, the firm is dealing with the RBI. “We are an external regulator. At this point, they (Paytm) are dealing with RBI,” Damodaran said during the release of his biography ‘The Turmeric Latte’ compiled by his former Sebi colleagues.

According to the RBI’s order dated January 31, the central bank asked PPBL to stop any further deposits, credit transactions or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards (NCMCs) after February 29. This deadline was later extended to March 15.

When asked about his views on any issues that may have an impact on Paytm, Damodaran noted, “It is too early. We have not got to that stage.” After RBI’ s action on PPBL, Paytm earlier this month announced to set up a group advisory committee headed by M Damodaran. The committee was formed with the objective of strengthening compliance and regulatory matters.

The committee, according to Paytm, also includes veteran professionals like former Institute of Chartered Accountants of India (ICAI) President M.M. Chitale and a former governing Council Member of Banking Codes and Standards Board of India nominated by RBI. It also includes former Chairman and Managing Director of Andhra Bank R Ramachandran.

Meanwhile, ICAI President Ranjeet Kumar said its financial reporting review board (FRRB) may look at the Paytm issue and consider appropriate action if required. “So far, we have not considered it (Paytm issue), but the board meeting of the FRRB will take place in the near future and it will consider appropriate action if required. So far, we have not decided anything as far as this matter,” Agarwal said.

(With PTI inputs)

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