Jio Financial Services (JFS) has dismissed as “speculative” reports that the firm was in talks to acquire the wallet business of Paytm, which finds itself in the middle of a regulatory firestorm.
“We clarify that the news item is speculative and we have not been in any negotiations in this regard,” JFS said in an exchange notification on February 5.
Paytm, too, denied reports of talks with Jio Financial Services. It told exchanges on February 6 that neither the company or its associate, Paytm Payments Bank, was in any kind of negotiations.
“We clarify that the abovementioned news item is speculative, baseless and factually incorrect. We have not been in any negotiations in this regard. We have been informed by Paytm Payments Bank Limited, our associate company, that they also have not been in any negotiations in this regard,” Paytm said.
What's happening at Paytm Payments Bank?
On January 31, the Reserve Bank of India imposed crippling restrictions on Paytm Payments Bank, including a bar on accepting fresh deposits and credit transactions after February 29.
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The central bank said a comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns at the bank, warranting further supervisory action.
Also read: 5X jump in Paytm employees looking for jobs, ‘safe pastures’
No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29 other than any interest, cashback, or refunds which may be credited anytime, the RBI said.
A year ago, the banking regulator had barred Paytm Payments Bank from onboarding new customers.
At 9.42 am, One97 Communciations, the Paytm parent, which shed 43 percent in four days, was trading at Rs 448.5 on the National Stock Exchange, up 2.28 percent from the previous close.
Jio Financial Services pared some of its early losses and was trading at Rs 278.05, down 3.82 percent.
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