BankingBanking & FinanceBusinessBusiness & EconomyBusiness Line

More bother for Paytm, EPFO blocks transactions into accounts linked with Paytm Payments Monetary institution

Story highlights

In a circular dated February 8th, the EPFO directed its field officers to no longer derive claims associated with Payment Monetary institution Restricted (PPBL) accounts

PayTM is facing more bother as the Employee Provident Fund Organisation (EPFO) has presented that it’ll block deposits and credit score into EPF accounts linked with Paytm Payments Monetary institution. This comes after the Reserve Monetary institution of India presented restriction on One 97 Communications’ digital funds gateway, initiating February 23rd.

EPFO instructions

In a circular dated February 8th, the EPFO directed its field officers to no longer derive claims associated with Paytm Payments Monetary institution Restricted (PPBL) accounts.

“The entire field officers are informed to chorus from accepting claims associated with financial institution accounts in Paytm Payment Monetary institution w.e.f February 23, 2024. A vide publicity wants to be initiated to steal awareness about this alternate,” said the circular.

EPFO, which has a corpus of over 18 trillion rupees (over $216 billion) and covers nearly 300 million workers, had allowed the Paytm Payments Monetary institution and Airtel Payment Monetary institution to determine claims in November final twelve months.

RBI orders

The Reserve Monetary institution of India (RBI) on January 31 ordered Paytm’s banking arm Paytm Payments Monetary institution to discontinue accepting contemporary deposits in its accounts or trendy wallets from March.

In a press free up, the RBI said that Paytm Payments Monetary institution is perchance no longer allowed to rob additional deposits in any customer accounts after Feb 29, and no credit score transactions can be allowed both, in conjunction with by strategy of wallets.

“The Complete System Audit narrative and subsequent compliance validation narrative of the open air auditors printed chronic non-compliances and continued materials supervisory considerations in the financial institution, warranting additional supervisory motion,” said the RBI.

“No additional deposits or credit score transactions or prime-united states of americashall be allowed in any customer accounts, prepaid devices, wallets, FASTags, NCMC playing cards, and numerous others. after Feb 29, 2024, diversified than any passion, cashback, or refunds which would perhaps additionally very well be credited anytime,” it added.

“Withdrawal or utilisation of balances by its possibilities from their accounts in conjunction with savings financial institution accounts, present accounts, prepaid devices, FASTags, Nationwide General Mobility Playing cards, and numerous others. are to be authorized with out any restrictions, as a lot as their readily accessible steadiness,” the RBI additional said.

(With inputs from agencies)

Content Protection by

Back to top button