Jio Financial Denies Acquisition Talks with Paytm’s Wallet Business Amid RBI Crackdown
New Delhi: Jio Financial Services Ltd, owned by Reliance Industries, has rejected reports claiming that it is in discussions with Paytm to purchase its wallet business. This denial comes as the Reserve Bank of India (RBI) tightens its grip on Paytm for violating regulations.
In a regulatory filing, Jio Financial clarified, “We clarify that the news item is speculative and we have not been in any negotiations in this regard.” The company emphasized its commitment to complying with its obligations and making necessary disclosures.
Earlier reports suggested that HDFC Bank and Jio Financial were the frontrunners to acquire Paytm’s wallet business, which caused Jio Financial Services Ltd shares to surge over 15 percent.
The RBI recently issued a directive restricting Paytm from accepting new deposits or allowing credit transactions beyond February 29. The central bank took this action due to numerous accounts created on Paytm Payments Bank without proper identification, with over 1,000 users linked to the same Permanent Account Number (PAN). The RBI and auditors found discrepancies in the compliance submitted by the payments bank, raising concerns about potential money laundering activities.
As the situation unfolds, Jio Financial Services Ltd remains firm in its denial of any ongoing acquisition talks with Paytm’s wallet business.
Jio Financial, the financial services arm of Reliance Jio, has denied recent reports claiming that it is in talks to acquire Paytm’s wallet business. The rumors had suggested that Jio Financial was considering a potential acquisition to strengthen its digital payment offerings. However, Jio Financial clarified that it currently has no such plans and remains focused on expanding its own digital services portfolio. Paytm’s wallet business is one of the leading digital payment platforms in India, and it continues to grow rapidly in the country’s competitive fintech market.
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