Reliance Industries-spin off Jio Monetary Companies mentioned Monday night that it isn’t negotiating with Paytm to amass its pockets enterprise, quashing “speculative” media stories because the Noida-headquartered agency scrambles to place out a fireplace from the central financial institution’s clampdown final week.

The Hindu Businessline reported over the weekend that Paytm and Jio Monetary Companies have been participating for months, one thing that escalated after the Indian central financial institution widened its crackdown on Paytm’s Funds Financial institution, the unit that processes transactions for monetary providers large Paytm. Shares of Jio Monetary Companies jumped greater than 15% on native exchanges Monday on the speculative stories.

TechCrunch first reported final week that the Reserve Financial institution of India is contemplating levying extra penalties on Paytm and should revoke its financial institution allow. Paytm Funds Financial institution, an affiliate of Paytm, homes the 330 million pockets clients of Paytm. In early 2018, when Paytm obtained the Funds Financial institution license – which permits the holder to supply clients a financial savings account of as much as $2,400 – it needed to give up its PPI license, the allow required to function the pockets enterprise.

Reliance listed its little-known non-bank monetary subsidiary Jio Monetary Companies final 12 months. Jio Monetary Companies owns a couple of 6% stake in Reliance and is more and more increasing its lending and insurance coverage companies.