Following a recent directive from the RBI to Paytm Payments Bank to cease taking new contributions in its accounts or digital wallets as of March, the EPFO took this action.

According to a government decree, the central bank of India has placed limits on the payments bank because of chronic irregularities, thus as of February 23, the state-run social security fund will stop processing claims made through Paytm Payments Bank accounts.

According to the order, which Reuters examined, the Employees’ Provident Fund Organization (EPFO) has instructed its officers to hold off on accepting claims related to accounts in Paytm Payments Bank, a One 97 Communications affiliate.

The EPFO, which is a division of India’s Ministry of Labor and Employment, issued the ruling on Thursday.

The action follows the Reserve Bank of India’s directive last week to Paytm Payments Bank to cease taking new deposits in its digital wallets or accounts as of March 1 due to non-compliance with regulations and supervisory concerns.

Paytm Payments Bank was granted permission by the EPFO, which covers about 300 million workers and has a corpus of over 18 trillion rupees ($216.89 billion), to resolve claims in November 2023.

Pension funds for employees are also managed by the state-run Social Security fund.

Source LinkĀ 

By Editor

Leave a Reply