After a report came out saying that possible buyers, Jio Financial Services among them, might be talking about buying Paytm’s wallet business early on, the company quickly said these stories were not true. A person with authority at Paytm made it clear they are not involved in any talks about selling the wallet service.
At the same time, the spokesperson from Paytm Payments Bank repeated their promise to follow all rules but did not comment on what people are guessing in the market. They focused again on PPBL’s promise that they will make sure customers have a smooth experience with the products they provide—a commitment emphasized by our esteemed leader.
The first report, quoting different people with information on the subject, identified Jio Financial Services and HDFC Bank as main competitors interested in buying the wallet business of Paytm. This possible course of action came up due to new rules from India’s central bank, the Reserve Bank of India (RBI), which affected Paytm Payments Bank.
Jio Financial Services shares went up to 16.5 percent higher in the middle of day trading on the BSE after first news came out, but HDFC Bank’s shares did not show any significant change.
From last year in November, people with inside information started to share news about discussions between Paytm and Jio Financial Services. But these negotiations faced some troubles due to problems with customer verification processes for Paytm. The latest events hint that how much the company is worth has become less important, giving a quiet indication that there might soon be an urgent sale by Paytm as mentioned in the report.
Moreover, the report indicates that Paytm is thoughtfully considering a possible arrangement with HDFC Bank. This kind of partnership between Paytm and HDFC might manage their mutual customers effectively – especially those individuals who use services from both HDFC Bank and the Paytm wallet; this would make sure these users have an uninterrupted experience.
We need to highlight that the Reserve Bank of India has put strong limitations on Paytm Payments Bank lately. These rules stop it from taking new deposits, making credit transactions or adding money to customer accounts. Furthermore, it is significant to mention that following February 29th of 2024, the central bank halted additional crucial banking functions for Paytm Payments Bank, including its UPI service and the ability to transfer funds.