Managing Director and Chief Executive Officer Amitabh Chaudhry of Axis Bank, a private sector lender, reportedly stated at an event that the bank is prepared to collaborate with Paytm provided the Reserve Bank of India grants permission.

The great majority of transactions on Paytm and about 75% of its gross merchandise value originate from users utilizing its app to make payments using the well-known UPI.  "Subject to regulatory approval and if the regulator allows us to work with Paytm, of course we will work with them, they are an important player," added Chaudhry.

As of right now, One 97 Communications Limited, the company behind the Paytm brand and UPI app, is not affiliated with any other commercial banks.

Beyond January 31, Axis and Paytm have been talking business, according to Arjun Chowdhry, Group Executive, Axis Bank's NRI, Cards, and Payments, Affluent Banking. 

But he made it clear that the talks are for general business and not business-specific.  "We are in talks with Paytm regarding our regular business services. We are talking about new things now that the events of January 31 have occurred," Chowdhry said to a television station.

The RBI ordered Paytm Payments Bank Ltd., a subsidiary of billionaire Vijay Shekhar Sharma's fintech empire, to stop accepting deposits in its accounts or well-known digital wallet after February 29, severely undermining the founder's aspirations and placing the company under intense regulatory and investor scrutiny.