Jio Financial, Paytm Shut Down Rumors of Wallet Business Acquisition

6 Feb 2024 , 12:35 PM

Reports that Jio Financial Services (JFS) was in talks to buy Paytm’s wallet business—which is now embroiled in a regulatory storm—were deemed ‘speculative’ by JFS.

In an exchange statement on February 5, JFS stated, ‘We clarify that the news item is speculative and we have not been in any negotiations in this regard.’

Paytm also refuted rumours that it has discussions with Jio Financial Services. On February 6, it informed exchanges that there were no talks going on between the business and Paytm Payments Bank, one of its associates.

We would like to make it clear that the news article in question is unfounded, speculative, and factually inaccurate. In this regard, we have not engaged in any conversations. Our associate company, Paytm Payments Bank Limited, has informed us that they have likewise not engaged in any conversations in this area,’ stated Paytm.

Paytm Payments Bank was subject to severe limitations on January 31 by the Reserve Bank of India, which included a ban on new deposits and credit transactions after February 29.

The central bank stated that ongoing major supervisory issues and persistent non-compliance at the bank were discovered by a comprehensive system audit report and the external auditors’ following compliance validation report, which called for additional supervisory action.

With the exception of interest, cashback, or refunds that may be credited at any time, the RBI stated that no more deposits, credit transactions, top-ups, or withdrawals will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29.

The banking authority had prohibited Paytm Payments Bank from accepting new clients a year prior.

One97 Communciations, the parent company of Paytm, was up 4.18% from the previous closing at ₹456.8 on the National Stock Exchange at 12.37 pm. One97 Communciations had lost 43% of its value in four days.

Reversing some of its early gains, Jio Financial Services was trading at ₹278.05, a 3.82% decrease.

For feedback and suggestions, write to us at [e-mail]