EPFO To Halt Paytm Payments Bank-Linked Deposit And Credit Transactions
The direction will be effective from Feb. 23, 2024.
The Employees Provident Fund Organisation will stop accepting claims linked to Paytm Payments Bank Ltd. accounts from Feb. 23, following the RBI's curbs.
The EPFO has taken a call to stop accepting deposits and credit transactions in Paytm Payments Bank accounts. The organisation has directed its field offices to refrain from accepting claims associated with bank accounts at Paytm Payments Bank, according to a circular issued on Thursday.
"All the field offices are advised to refrain from accepting claims associated with bank accounts in Paytm Payments Bank Limited...A vide publicity should be initiated to raise awareness about this change," the circular said.
On Jan. 31, the RBI restricted Paytm Payments Bank from taking further deposits and credit from Feb. 29 onwards, due to persistent non-compliance with know-your-customer norms.
The EPFO had authorised for Paytm Payments Bank and Airtel Payments Bank Ltd. to be used for settlement of payments in November 2023.
With little let up on the matter, the payments bank's Board Member and Independent Director, Manju Agarwal, also resigned with effect from Feb. 1.
On Thursday, while responding to queries on the matter, Governor Shaktikanta Das maintained that the RBI's restrictions on the regulated entity was 'proportionate to the gravity of the situation'.
