EPFO will block claims made by Paytm Payments Bank following RBI restrictions.

Government of India will block claims made through Social Security Fund. Paytm Payment Bank accounts since February 23, as the country’s central bank has imposed restrictions on the payments bank due to persistent irregularities, a government order said.

Employees Provident Fund Organization (EPFO) has asked its officers to refrain from accepting claims linked to accounts at Paytm Payments Bank, a partner of One 97 Communications, according to the order, which was reviewed by Reuters.

The order was issued on Thursday by the EPFO, which comes under India’s Ministry of Labor and Employment.

comes after the move. Reserve Bank of Indialast week, directed Paytm Payments Bank to stop accepting new deposits into its accounts or digital wallets from March, citing supervisory concerns and non-compliance with regulations.

EPFO – which has a corpus of 18 trillion rupees ($216.89 billion) covering around 300 million workers – had in November 2023 allowed Paytm Payments Bank to settle the claims.

State managed social security fund also pension funds of overseas workers.

© Thomson Reuters 2024

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