Paytm is in discussions to sell its wallets business, housed under Paytm Payments Bank, with HDFC Bank and Jio Financial Services (JFSL) emerging as potential buyers.
The move follows the Reserve Bank of India's recent directive prohibiting Paytm Payments Bank from accepting deposits starting February 29. Talks with JFSL reportedly began last November, while Paytm approached HDFC Bank just before the RBI ban. With concerns over KYC issues affecting Paytm's aggressiveness in the business, the company seeks a deal for business continuity. JFSL's stock surged by 15.74%, indicating market optimism.