Paytm advisory panel discussing terms of reference with company, says panel head

An advisory committee, set up by Paytm owner One97 Communications after the Reserve Bank of India's action on its payments bank business, is engaging with the company on matters related to the terms of reference for the panel, said the panel's head and former chairman of the Securities and Exchange Board of India (Sebi), M Damodaran.

"We have been engaging with the group on matters relating to the advisory committee's terms of reference," Damodaran said on Sunday, in response to a query about his engagement with Paytm.

He said that the panel members are external advisors and Paytm is currently engaged in dealing with the RBI.

On January 31, the RBI asked PPBL (Paytm Payments Bank ) to stop further deposits, credit transactions, and 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 the setting up of a group advisory committee headed by Damodaran. The committee was set up to advise the company on strengthening compliance and regulatory matters.

Meanwhile, the RBI, on Friday, asked the National Payments Corporation of India to examine the possibility of migrating Paytm Payments Bank customers using the UPI handle '@paytm' to 4-5 other banks, in a bid to prevent any disruptions in the payment ecosystem.

Damodaran was speaking at the release of his biography The Turmeric Latte, compiled by one of his former colleagues.

(The copy was edited slightly for context.)