In yet another jolt for Paytm, now the Employees’ Provident Fund Organisation has ordered restrictions on the transaction from Paytm Payments Bank. According to a Reuters report, EPFO has said that it will not proceed the claims that are being made via the PPB accounts. The government’s social security fund has also given a timeline for this. All claims made via PPB accounts from February 23 onwards will not be processed. The EPFO officers have been ordered to not accept the claims that are linked with accounts in Paytm Payments Bank, the Reuters report added.
Paytm ban: What changes for EPFO users now?
The new ban by the EPFO will directly impact the timely withdrawals as well as credit transactions for the users who have their bank accounts belonging to Paytm Payments Bank.
In the wake of these restrictions, the EPFO subscribers will now have to update their bank account details. Only after updating the bank account details will these users be able to get an access the EPFO funds.
The development comes a year after the social security fund had approved all payments via Airtel Payments Bank and Paytm Payments Bank.
This directive follows the Reserve Bank of India’s recent instruction to Paytm Payments Bank to cease accepting new deposits in its accounts or digital wallets from March due to supervisory concerns and non-compliance with regulations.
Having a significant corpus of over $216.89 billion covering nearly 300 million workers, the EPFO had previously permitted Paytm Payments Bank to settle claims in November 2023. Additionally, the state-run social security fund oversees workers’ pension funds.