EPFO restricts transactions in Paytm Payments Bank. Check details here

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Paytm Payment Bank accounts. This was announced in a circular issued on Feb 8, 2024 and uploaded on the official website of pension fund body.

The circular has categorically informed all the field offices to stop accepting claims associated with bank accounts in Paytm Payment Bank starting Feb 23, 2024. The pension fund body also stated that publicity should be initiated to raise awareness about this change.

In the wake of RBI imposing restrictions on deposit and credit transactions in the customer accounts of Paytm Payments Bank after Feb 29, 2024, EPFO has decided to keep the beleaguered payments bank accounts out of its network. “All the field offices are advised to refrain from accepting claims associated with bank accounts in Paytm Payments Bank with effect from Feb 23, 2024," reads the circular.

For the unversed, Reserve Bank of India (RBI) issued an order on Jan 31, directing Paytm Payments Bank to stop onboarding new customers with immediate effect. This was done after comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and significant supervisory concerns in the financial institution.

ALSO READ: 'If paytm complied with everything, why would RBI act?' The banking regulator had also stated that no further deposits or credit transactions or top ups would be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards etc after February 29, 2024 other than any interest, cashbacks or refunds which may be credited anytime. The RBI had also directed that withdrawal of utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags,