Why Paytm cannot sell its wallet business?

Paytm is not permitted to sell its wallet business due to restrictions imposed by the Reserve Bank of India (RBI) on Paytm Payments Bank, according to NDTV Profit.

Why Paytm cannot sell its wallet business?

These restrictions are preventing the transfer of business. Paytm is not able to sell its wallet Business. RBI is restricting the transfer of Business on Paytm payment. One97 communications surrendered its PPI license when it received a payments bank license.

A spokesperson for Paytm Payments Bank told IANS that they don’t comment on market rumors. The spokesperson emphasized that the company fully complies with regulatory directions and strives to ensure a seamless customer experience with Paytm Payments Bank Ltd (PPBL) products.

In the meantime, Paytm’s Founder and CEO, Vijay Shekhar Sharma, reassured employees that there would be no job cuts. He mentioned that the company is in discussions with the Reserve Bank of India (RBI) and is also considering partnerships with other banks.

Sharma, addressing employees in a virtual town hall, said, “We will figure out everything soon. We will reach out to the RBI to see what can be done.”

Jio and HDFC eying Paytm wallet business

The Hindu Business Line, quoting senior fintech and banking sector senior executives with knowledge of the matter, said that HDFC Bank and Jio Financial are reportedly among the forerunners to acquire the wallet business of Paytm, which operates under Paytm Payments Bank.

Paytm’s stock value fell after the Reserve Bank of India (RBI) stopped Paytm Payments Bank from doing some operations. This happened after an audit report and a follow-up report from external auditors.

Jio Financial Services is a part of Reliance Industries, which is led by the billionaire Mukesh Ambani. This company, which is not a bank, runs its financial services through its companies that deal directly with consumers. These companies are Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), and Jio Payment Solutions Limited (JPSL). It also has a joint venture called Jio Payments Bank Limited (JPBL).

Jio Financial Services partnered with BlackRock, the world’s biggest asset manager, to start an asset management company. They invested $300 million together in this company. Jio Financial Services said that this joint venture, called Jio BlackRock, would use technology to give millions of investors in India access to affordable and innovative investment solutions.

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