Jio Financial Services Denies Talks To Acquire Paytm Wallet Amid RBI Scrutiny

Jio Financial Services (JFSL) denies engaging in acquisition discussions with Paytm wallet amidst RBI suspension
Jio Financial Services
Jio Financial Services

Ambani backed-Jio Financial Services (JFSL) stated in an exchange filing on Monday that it is not engaged in any formal discussions to acquire Paytm wallet (that comes under Paytm Payments Bank Ltd.), which has encountered increased difficulties following the RBI's notification suspending its services.

Previously, a Hindu BusinessLine mentioned in a report that JFSL and HDFC Bank were leading frontrunners for the acquisition of Paytm's wallet business. The shares of the financial firm witnessed a sharp increase after the reports. JFSL saw a rise of more than 10 per cent on both the bourses.

"We clarify that the news item is speculative and we have not been in any negotiations in this regard," the company stated in its exchange filing.

In the wake of RBI's imposition of a ban on Paytm Payments Bank due to non-compliance, Paytm shares have nosedived by 42 per cent in a mere 3 days. The stock concluded Monday's trading session at an all-time low of Rs 438 on the NSE.

Despite the multitude of adverse reports, like potential layoffs, investigation by the ED and the revocation of the license of OCL's lending arm, the parent company of PPBL has dismissed any such claims.

"There are other stories in various media, including social media, which are spreading speculation and misinformation on the reasons for RBI's action on Paytm Payments Bank. The recent direction from RBI is a part of the ongoing supervisory engagement and compliance process. For this action, we refer our stakeholders to the official press release of RBI dated January 31, 2024, and not rely on unofficial sources," the company said in a recent exchange filing.

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