EPFO Imposes Restrictions On Deposits And Credit Transactions In Paytm Payment Bank Accounts

Posted On - 14 March, 2024 • By - King Stubb & Kasiva

The Employees Provident Fund Organisation (EPFO) has issued a circular dated February 8, 2024 bearing File No: BKG/1/2021-BKG/C-32521/23 regarding restrictions on deposits and credit transactions in Paytm Payment Bank Accounts. It has advised all field offices to refrain from accepting claims associated with bank accounts in Paytm Payment Bank Limited with effect from February 23, 2024. Further, it has directed that wide publicity should be initiated to raise awareness about this change. The direction has been issued in the light of a press release on March 11, 2022 issued by the Reserve Bank of India (RBI), exercising its authority under section 35A of the Banking Regulation Act, 1949, directing Paytm Payments Bank Ltd (PPBL) to cease onboarding new customers immediately. Earlier, the Ministry of Labour & Employment, Government of India had issued a circular dated November 1, 2023, regarding payment of  EPF benefits to subscriber’s payment bank accounts, including Paytm Bank Limited among the scheduled commercial payment banks for settling EPF payments by Para 72(e) of EPF provisions.