Shares of Jio Financial Services Ltd were up over 15 percent yesterday
New Delhi:
Reliance Industries-owned Jio Financial Services Ltd has denied a report that it is in talks with Paytm to acquire its wallet business, amid a crackdown by the Reserve Bank of India (RBI) over rule violations.
“We clarify that the news report is speculative and that we have not entered into any negotiations in this regard,” the company said in a regulatory filing late last night.
“We have always made and will continue to make disclosures consistent with our obligations,” the company said.
The clarification followed reports yesterday suggesting that HDFC Bank and Jio Financial were the frontrunners to buy Paytm's portfolio business.
Shares of Jio Financial Services Ltd were up over 15 percent yesterday after the report.
The RBI last week issued a directive restricting Paytm from accepting new deposits or allowing credit transactions after February 29.
Hundreds of accounts created at Paytm Payments Bank without proper identification were one of the main reasons for the RBI to impose strict restrictions on the company, people familiar with the matter said.
More than 1,000 users appeared to have the same Permanent Account Number (PAN) linked to their account.
The compliance submitted by the payment bank was found to be incorrect during verification processes conducted by both the RBI and auditors.
The RBI is concerned that some accounts could have been used for money laundering, sources said.