Billionaire Mukesh Ambani's Jio Financial Services Limited (NSEI:JIOFIN) (JFSL) on 05 February 2024 clarified that it is not in talks with troubled One97 Communications Limited (NSEI:PAYTM) to acquire Paytm Payments Bank Limited. "We clarify that the news item is speculative and we have not been in any negotiations in this regard," JFSL said in a regulatory filing late in the night. It was asked by stock exchange BSE to comment on reports stating that the NBFC is in talks with One 97 to acquire the wallet business.

Following the report, shares of the NBFC, which got demerged and listed on stock exchanges last year, ended 14% higher at INR 289 on BSE. The bourse has also asked Paytm to clarify on the news report. Its reply is awaited.

Earlier in the day, The Hindu Business Line newspaper published a report saying that while Jio has been talks since last November, discussions with HDFC Bank began just ahead of RBI's ban on Paytm Payments Bank. According to the report, Jio may also offer to acquire Paytm Payments Bank. Ever since RBI imposed a ban on Paytm Payments Bank from offering all kinds of banking services for non-compliance, Paytm shares have fallen 42% in just 3 days and eroded INR 205,000 million worth of investor wealth in the process.

The stock ended 05 February 2024 session at INR 438.35 on BSE at all-time low levels. The regulator is also said to be considering cancelling the banking licence as well on possible money laundering and know-your-customer (KYC) violations at Paytm. RBI also found KYC checks for hundreds of thousands of customers were missing, and some of the accounts were either owned by individuals with past issues with enforcement agencies or had abnormal balances, amounting to crores of rupees in some cases.