Mumbai, February 5: RBI curtailed Paytm Payments Bank's services due to non-compliance. After that, CEO Vijay Shekhar Sharma and the company's team said the platform would function as usual after February 29, 2024. Now, the fintech company reportedly faces an existential crisis due to the Reserve Bank of India's ban on its payment bank services. Amid this ongoing news, reports say Mukesh Ambani may acquire the Paytm wallet as the Jio Financial shares soared during the RBI's ban on Paytm.
According to the report by Hindustan Times, the Paytm team has reportedly been in conversation with Jio Financial since last November before the ban. The report mentioned that Jio Financial Services' plan includes acquiring the Paytm Payments Bank. The Paytm ban stopped essential services, such as accepting deposits or credits to customer accounts. Paytm CEO Vijay Shekhar Sharma Addresses Employees Amid Going RBI’s Restriction on Paytm Payment Banks Saying ‘There Will Be No Layoffs’ and ’Don’t Know What Went Wrong'.
The Paytm CEO Vijay Shekhar Sharma also addressed that the employees would not be laid off, and what happened was not known to him as the central bank outright banned the services. According to the report, the agencies looked for the possibility of the entity being used as a front to launder money. As per the report, Paytm denied all these allegations. The report highlighted that neither the Paytm CEO nor the entity has been investigated by the ED (Enforcement Directorate) on the "money laundering" charges. Following the RBI diktat, the company's shares lost 42% in three days. BYJU’s Suspends Its Three-Year Deal With Football Icon Lionel Messi As Global Brand Ambassador Amid Cash Crunch: Reports.
On the other hand, the Jio Payments Bank, owned by Jio Financial, is re-platformed to launch the "digital savings accounts" and "bill payments". The report mentioned that it also has launched debit cards and has a 2,400 business network. Jio also reportedly launched the Jio Voice box like the Paytm Soundboxes. The Mukesh Ambani-owned Jio Financial also enabled Jio phones with UPI and started implementing QR codes in the ecosystem. The report does not confirm the acquisition of the Paytm Payments Bank by Mukesh Ambani's Jio Financial; however, it is a likely possibility for the company.
(The above story first appeared on LatestLY on Feb 05, 2024 06:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).