Deposits and credit transactions in Paytm Payment Bank accounts are prohibited by the Employees Provident Fund Organisation (EPFO). This was disclosed in a circular published on February 8, 2024, and posted on the pension fund body's official website.
All field offices have been explicitly notified by the circular to cease taking claims related to Paytm Payment Bank bank accounts as of February 23, 2024.
The pension fund authority further declared that publicity on this adjustment has to be started.
Following an RBI Limitation
In the wake of RBI imposing limits on deposit and credit activities in the client accounts of Paytm Payments Bank from Feb 29, 2024, EPFO has decided to keep the troubled payments bank accounts out of its network. The circular states, "With effect from February 23, 2024, all field offices are advised to refrain from accepting claims associated with bank accounts in Paytm Payments Bank."
Raid by RBI
The Reserve Bank of India (RBI) ordered Paytm Payments Bank to stop taking new subscribers immediately on January 31. This action was taken following the discovery of serious supervisory concerns and ongoing non-compliances in the financial institution by the external auditors' compliance validation report and comprehensive system audit report.
Aside from interest, cashbacks, or refunds that may be credited at any point, the banking regulator had also declared that after February 29, 2024, no more deposits, credit transactions, or top-ups would be permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc.
Additionally, the Reserve Bank of India had mandated that customers' use of balances in their accounts, such as savings bank accounts, current accounts, prepaid cards, FASTags, National Common Mobility Cards, etc., be allowed to be withdrawn without restriction, up to the available balance.
