India’s Government Social Security Fund will stop all claims received through Paytm Payments Bank accounts from February 23. In fact, on January 31, 2024, the Reserve Bank of India (RBI) had ordered to ban Paytm Payments Bank.
Actually, RBI has taken this decision due to continuous irregularities in Paytm Payments Bank.
The Employees’ Provident Fund Organization (EPFO) has asked its officials to refrain from accepting claims linked to accounts in Paytm Payments Bank, an affiliate of One 97 Communications. It was reviewed by Reuters.
EPFO had issued this instruction on Thursday. Let us tell you that EPFO comes under the Ministry of Labor and Employment of India.
Why did EPFO take this step?
Last week, the Reserve Bank of India had directed Paytm Payments Bank to stop accepting new deposits in its accounts or digital wallets from March, citing non-compliance with rules. After this instruction, EPFO has taken this decision.
EPFO has a corpus of more than Rs 18 trillion ($216.89 billion) covering about 300 million employees.
In November 2023, EPFO had given permission to Paytm Payments Bank to settle the claim. The state-run social security fund is also a pension fund for foreign workers.
