This move comes in response to the Reserve Bank of India’s (RBI) decision on January 31, instructing Paytm Payments Bank to cease all banking services, including deposit acceptance and payment processing, starting February 29, 2024.
The Employees’ Provident Fund Organisation (EPFO) has advised all its field offices to abstain from accepting claims linked to bank accounts in Paytm Payment Bank. This order will come into effect from February 23, 204. For EPFO subscribers with accounts in Paytm Payment Bank, this restriction may affect the timely processing of withdrawals and credit transactions.
This move comes in response to the Reserve Bank of India’s (RBI) decision on January 31, instructing Paytm Payments Bank to cease all banking services, including deposit acceptance and payment processing, starting February 29, 2024.
Background
Last year, EPFO had permitted EPF payments through Paytm Payment Bank and Airtel Payments Bank accounts.
However, the recent RBI directive led EPFO to impose restrictions on deposits and credit transactions for subscribers holding EPF accounts in Paytm Payment Bank.
The RBI’s circular on Paytm Payments Bank outlined that no further deposits or credit transactions would be allowed after February 29, 2024, except for interest, cashbacks, or refunds.
However, customers can freely withdraw or utilize their balances without restrictions, up to their available balance.
RBI Deputy Governor Swaminathan J stated that the decision to restrict new deposits was made after providing ample time for Paytm Payments Bank to rectify its non-compliance issues.
RBI Governor Shaktikanta Das, in a press conference after the Monetary Policy Committee meeting, reiterated that regulated entities are given sufficient time to meet regulatory requirements.
Impact on EPFO subscribers
It is crucial for subscribers to update their bank account details promptly to avoid any disruptions in accessing their Employees’ Provident Fund (EPF) corpus.
To update bank account details in the EPF account online, subscribers can follow these steps:
Step 1: Visit the EPFO’s member portal and log in using the username and password.
Step 2: Navigate to the ‘Manage’ option in the top menu bar.
Step 3: Select the ‘KYC’ option from the drop-down menu.
Step 4: Choose the document type as ‘bank.’
