Jio to buy Paytm's wallet business? Read the company's clarification

By Lokmat English Desk | Published: February 6, 2024 12:30 PM2024-02-06T12:30:29+5:302024-02-06T13:00:39+5:30

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There's a significant update on this. Major financial services company Paytm responded to this on Monday.

Paytm has dismissed all such reports. There were reports that Paytm is in talks with some interested investors to sell its wallet business. The news came amid the Reserve Bank of India (RBI) ban on Paytm Payments Bank. Some reports claimed that HDFC Bank and Jio Financial Services were the frontrunners to bid for Paytm's wallet business.

'We do not comment on any market logic. We fully comply with the instructions of the regulator. We strive to ensure a seamless customer experience with the products offered by Paytm Payments Bank Limited (PPBL),' said a Paytm Payments Bank spokesperson.

Earlier, Paytm founder and CEO Vijay Shekhar Sharma had assured his employees that there would be no layoffs. The company is in discussion with the Reserve Bank. Apart from this, it is also considering the option of partnering with other banks.

'We will soon find a way. We can also approach the Reserve Bank to see what can be done," Sharma said while addressing the employees in a virtual town hall.

Elaborating on this, Madhur Deora, Chairman and Group CFO of Paytm, said that both in terms of design and structure, the fintech company and its partners are not and cannot be identical.

There may be a perception that Paytm and Paytm Payments Bank are one and the same, but by design and structure it is not and cannot be. Madhur Deora said that the first is that it is an associate company and the second is that it is not an associate company in the sense that it is a bank.

The first and foremost thing for a bank is to follow the rules that a bank needs to follow. Which should have an independent management team. A bank should also have a separate compliance and risk team, he noted.