Paytm problems increased after RBI now EPFO also banned transactions

The problems facing Paytm Payments Bank don't seem to be getting better. First, steps have been taken by the Reserve Bank of India (RBI) to prohibit Paytm Bank. The Employees Provident Fund Organisation (EPFO) has now prohibited Paytm Payments Bank in addition to the RBI. In this context, EPFO has also released a circular. The EPFO has declared that as of February 23, it will not permit deposits or withdrawals from EPF accounts connected to Paytm Payments Bank. Last year, EPFO gave its approval for EPF payments to be made to Paytm Payment Bank and Airtel Payments Bank accounts.

All field offices have been notified by EPFO in a circular to cease accepting claims associated with Paytm Payment Bank (PPBL) accounts as of February 23, 2024. The pension fund body added that publicity announcing this change ought to be started.

On February 29, 2024, the RBI prohibited credit and deposit transactions in Paytm Payments Bank customer accounts. As a result, EPFO decided to exclude distressed payment bank accounts from its network. According to a circular, starting on February 23, 2024, field offices are advised not to accept any claims related to bank accounts held by Paytm Payments Bank.