Jio Financial Denies It Is In Talks To Acquire Paytm's Wallet Business

Reliance Industries-owned Jio Financial Services Ltd has denied a report that it is in talks with Paytm to buy its wallet business amid a crackdown by the Reserve Bank of India (RBI) over violation of rules.

"We clarify that the news item is speculative and we have not been in any negotiations in this regard," the company said in a regulatory filing late last evening.

"We have always made and will continue to make disclosures in compliance with our obligations," the company said.

The clarification followed reports yesterday that suggested that HDFC Bank and Jio Financial were the frontrunners to buy the Paytm's wallet business.

Jio Financial Services Ltd shares had surged over 15 per cent 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 on Paytm Payments Bank without proper identification were one of the major reasons for the RBI to impose stringent curbs on the company, people familiar with the matter said.

More than 1,000 users were found to have linked the same Permanent Account Number (PAN) to their accounts.

The compliance submitted by the payments bank was found to be incorrect during verification processes conducted by both the RBI and auditors.

The RBI is concerned some accounts could have been used for money laundering, sources said.