EPFO restricts deposits and credit transactions in Paytm Payments Bank Account

The Employees’ Provident Fund Organisation, earlier, vide circular no. BKG/1/2021-BKG/C-32521/181, dated 1^stNovember, 2023, had qualified payment banks, namely, Paytm Payments Bank Ltd. and Airtel Payments Bank Ltd., to settle the EPF payments. This was consequent to the inclusion of said banks in the second schedule to the Reserve Bank of India Act, 1934.

Now, the Employees’ Provident Fund Organisation, vide circular no. BKG/1/2021-BKG/C-32521/263, dated 8^thFebruary, 2024, has restricted the deposits and credit transactions through Paytm Payments Bank Ltd. All the field offices are advised to refrain from accepting claims associated with bank accounts of Paytm Payments Bank Ltd., with effect from 23^rd February, 2024. 

This decision of the EPFO is in light of the press release dated 31^st January, 2024, of RBI regarding action taken against Paytm Payments Bank Ltd. under section 35A of the Banking Regulation Act, 1949.