JFSL shares surge 13.91% on reports of acquiring PPBL wallet business

A payment bank can raise deposit up to Rs two lakh but it can’t issue loans or credit cards.

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Jio Financial Services controls Jio Payments Bank through a joint venture with State Bank of India. Jio Payments Bank offered right issue of its equity shares in which SBI did not participate. (Representational Image)

Jio Financial Services Ltd (JFSL), controlled by the Reliance Industries group, on Monday jumped by 13.91 per cent to Rs 289.05 on the stock exchanges following reports that JFSL is in talks to buy the wallet business of Paytm Payments Bank Ltd (PPBL), an associate of One 97 Communications Ltd (OCL). However, shares of OCL – which runs the Paytm payment services – plunged by 10 per cent to Rs 438.35 in the wake of RBI curbs. It has now fallen by 43 per cent in the last three sessions.

According to market sources and media reports, Jio Financial and HDFC Bank are reportedly in talks to acquire Paytm’s wallet business. However, any acquisition of a wallet business or a payment bank will need the approval of the RBI.

Jio Financial is yet to respond to a query from the stock exchange about the acquisition of the wallet business.

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Paytm Payment Bank has over 30 crore wallets and 3 crore bank accounts, as per the information on the bank’s website. It has over 10 crore KYC customers, with 4 lakh users added every passing month. The bank is the largest issuer of FASTag with over 80 lakh FASTag units issued.

A payment bank can raise deposit up to Rs two lakh but it can’t issue loans or credit cards.

In a big blow to Paytm’s operations, the RBI last week barred Paytm Payments Bank from accepting deposits or top-ups in any of its key products—customer accounts, prepaid instruments, wallets, FASTags and National Common Mobility Card (NCMC), among others—after February 29 in the wake of “persistent non-compliances and material supervisory concerns”. OCL indicated that the company will stop its dependency on Paytm Payments Bank and its nodal accounts and QR codes will be moved to other bank