Paytm denies being in talks with Jio Financial to sell its wallet biz

One97 Communications Ltd (OCL), the parent company of fintech major Paytm, has denied reports regarding any discussions on selling the wallet business of Paytm Payments Bank to Jio Financial Services.

In a similar vein, Jio Financial Services also denied engaging in any discussions with Paytm, in a statement made to the exchange late Monday.

"We have not been involved in any negotiations in this matter. Paytm Payments Bank Limited, our associate company, has also informed us that they have not been involved in any discussions regarding this," OCL stated in a filing to the exchange.

On Monday, media reports suggested that Jio Financial Services and HDFC Bank were leading contenders to purchase Paytm's wallet business.

This marks the third clarification issued by Paytm through exchange filings in just over two days, concerning developments within the company.

On Sunday, Paytm addressed reports denying any investigation by the Enforcement Directorate (ED) into the company, its affiliates, or its Founder and Chief Executive Officer, Vijay Shekhar Sharma.

READ: Jio Financial Services denies being in talks to acquire Paytm's wallet biz

Earlier in the week, Paytm refuted allegations regarding investigations or breaches of foreign exchange regulations by the company or its associate, Paytm Payments Bank Ltd.

Reports citing sources indicated that the Enforcement Directorate (ED) was examining potential violations of the Foreign Exchange Management Act (FEMA) by platforms operated by OCL.

The Reserve Bank of India, last week, instructed Paytm Payments Bank to cease most of its operations, including deposits, by February 29.

On January 31, the RBI announced that no further deposits, credit transactions, or top-ups would be permitted in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Card (NCMC) cards, etc., beyond February 29, 2024, except for interest, cashback, or refunds that may be processed at any time.

Previously, in March 2022, the RBI mandated Paytm Payments Bank to halt the onboarding of new customers due to alleged violations of Know Your Customer (KYC) norms and to appoint an audit firm.

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Sources disclosed to Business Standard last week that breaches of KYC norms, raising concerns over money laundering, have led the RBI to take stringent actions against Paytm Payments Bank.