EPFO to halt credits, deposits into EPF accounts linked with Paytm Payments Bank

Following RBI's restrictions, the Employees’ Provident Fund Organisation (EPFO) limits deposits and credit transactions in Paytm Payments Bank accounts.

The EPFO, in a circular on February 8, 2024, asked its Field Offices not to accept claims associated with bank accounts in Paytm Payment Bank Limited or PPBL with effect from February 23, 2024.

Last year, EPFO permitted EPF payments in PPBL and Airtel Payments Bank accounts.

RBI's January 31 curbs prohibit deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags after February 29.

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RBI's restriction on Paytm

The Reserve Bank on Thursday said that the regulatory action is against Paytm Payment Bank Ltd (PPBL) and Paytm App will not be impacted by it.

In a major action against PPBL, the Reserve Bank earlier last month directed the lender to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29.

"Just one clarification, this particular action is against Paytm Payments Bank and not to be confused with Paytm App...App is not impacted by this action," RBI Deputy Governor Swaminathan J said in the media interaction after the bi-monthly Monetary Policy Committee (MPC) meeting.

Asked if banks can partner with Paytm wallet, he said it is a business decision and they have to carry out required due diligence as per their board-approved policy.