epfo blocked deposit and credit in paytem payments bank accounts circular issued

Paytm Payment Bank: Paytm Payments Bank, which is facing the action of Reserve Bank of India (RBI), has got another blow. Employees’ Provident Fund Organization (EPFO) has banned deposits and credits through Payments Bank. EPFO issued a circular on February 8 directing its field offices to block deposits and credits in EPF accounts linked to Paytm Payments Bank. This decision was taken due to the action of RBI.

Claims for accounts linked to Payments Bank will not be accepted.

It has been said in the circular that claims for accounts linked to Paytm Payments Bank should not be accepted. EPFO had given approval to make EPF payments in the accounts of Paytm Payments Bank and Airtel Payments Bank only last year. But, on January 31, RBI had announced a ban on deposits, credit and top up in Paytm Payments Bank accounts from February 29.

Sufficient time given to follow rules

Paytm’s subsidiary company Paytm Payments Bank started functioning from May 23, 2017. He was given license under the Banking Regulation Act. While taking the decision, RBI had said that despite several warnings, Paytm Payments Bank did not follow the rules. RBI Deputy Governor Swaminathan Janakiraman said that the bank was given enough time to comply with the rules. However, even after the passage of time, due to shortcomings being found, this drastic step had to be taken.

Paytm formed Group Advisory Committee

Earlier, Paytm’s parent company One 97 Communications has decided to form a Group Advisory Committee under the chairmanship of former SEBI Chairman M Damodaran. This committee will work with the company’s board to strengthen regulatory issues. According to the regulatory filing, apart from M Damodaran, the group advisory will also include former ICAI President MM Chitale and former Andhra Bank Chairman and MD R Ramachandran.

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