Jio Financial Services (JIOF) has issued a statement to clarify that the company has not engaged in discussions regarding the acquisition of Paytm wallet. This clarification comes in response to speculative reports circulating in the media.
Similarly, Paytm also addressed the matter, stating, "We have not been involved in any negotiations concerning this matter. Paytm Payments Bank Limited (PPBL), our associated company, has also confirmed that they have not been engaged in any such negotiations."
On Monday, Paytm shares surged by 5.5% to Rs 462.70 on the Bombay Stock Exchange. The recent decline in Paytm shares followed RBI restrictions imposed in previous sessions.
Earlier, One 97 Communications (OCL) released a statement indicating that PPBL had received further directions from the RBI under Section 35A of the Banking Regulation Act, 1949, as per a press statement dated January 31, 2024.
PPBL is actively working to comply with the RBI's directives and is collaborating with the regulator to address concerns swiftly. The company assures users that this development does not affect their deposits in savings accounts, wallets, FASTags, and NCMC accounts, and they can continue to utilize their existing balances.
OCL, as a payments company, collaborates with various banks (not exclusively with Paytm Payments Bank) on diverse payments products. In light of recent events, OCL has expedited plans to transition entirely to other bank partners. Moving forward, OCL will exclusively engage with other banks and cease operations with Paytm Payments Bank Limited.
The next phase of OCL's operations involves expanding its payments and financial services business exclusively through partnerships with other banks. The company will continue to offer acquiring services to merchants in collaboration with several leading banks and expand third-party bank partnerships. Furthermore, OCL's offline merchant payment network offerings, such as Paytm QR, Paytm Soundbox, and Paytm Card Machine, will remain unaffected, with the ability to onboard new offline merchants as usual.
(With Agency Inputs)