After RBI crackdown, EPFO blocks Paytm Payments Bank from February 23 | DETAILS

Amidst mounting challenges, Paytm Payments Bank finds itself embroiled in one more setback because the Employees’ Provident Fund Organization (EPFO) has issued a directive instructing its officers to train warning when dealing with claims linked to the Paytm subsidiary.

This growth casts additional shadows on the repute of Paytm Payments Bank, which has been dealing with a collection of hurdles in latest instances. The EPFO’s transfer alerts considerations over the reliability and compliance requirements of the financial institution, prompting a cautious method from the federal government physique chargeable for managing worker provident funds.

EPFO points round 

In a round, the EPFO, which comes beneath the Ministry of Labour and Employment, said, “All the field officers are advised to refrain from accepting claims associated with bank accounts in Paytm Payment Bank w.e.f February 23, 2024. A vide publicity should be initiated to raise awareness about this change.” 

This comes after the RBI on January 31 directed the Paytm Payments Bank to cease accepting deposits or top-ups in buyer accounts, wallets, FASTags and different devices after February 29.

Paytm Payments Bank’s unbiased director resigns

Paytm Payments Bank Limited (PPBL) is an affiliate of One97 Communications Limited (OCL). One97 Communications holds 49 per cent of the paid-up share capital (instantly and thru its subsidiary) of PPBL. Vijay Shekhar Sharma has a 51 per cent stake within the financial institution. RBI mentioned that persistent non-compliance by Paytm with the regulatory tips regardless of nudges over a time period in the end led to stern motion towards the fintech.

RBI on June 19, 2018, prohibited Paytm Payments Bank from opening any new account and pockets with impact from June 20, 2018, on account of supervisory considerations, which had been lifted by RBI on December 27, 2018, with impact from December 31, 2018.

Meanwhile, Paytm Payments Bank unbiased director Manju Agarwal is learnt to have resigned from the board after an RBI order imposed restrictions on the financial institution’s operations. According to a supply, Agarwal resigned with impact from February 1. “Paytm Payments Bank independent director Manju Agarwal has resigned from the company’s board after RBI order,” information company PTI reported citing sources. 

(With PTI inputs)

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