Jio Financial Services has issued a clarification, stating that it "has not been in any negotiations" to acquire Paytm's wallet business.
The company refuted speculative reports and emphasized that no discussions in this regard have taken place.
The clarification statement comes after Jio financial shares surged by 14%, closing at 289 rupees on the BSE on Monday after initial reports suggested talks with One97 for the acquisition of its wallet business.
Also read/watch - Jio Financial Services eyeing Paytm wallet business says report, shares surge nearly 14%
Paytm on its UPI services
UPI service on Paytm will continue to work as normal as the company is working with other banks to make changes in the back-end for continuity of its services, the fintech firm said on Monday.
Paytm UPI service falls under the Paytm Payments Bank, which was recently restrained by the Reserve Bank of India from taking money from customers after February 29.
"UPI on Paytm will continue to operate as normal. We are working in the back end to connect with other banks to ensure seamless continuity of service. Users are not required to do anything additional," a Paytm spokesperson said.