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Friday, February 23, 2024

EPFO: Paytm Payments Bank to be blocked from February 23

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Paytm Payments Bank is in deep trouble since the EPFO has directed its officers to handle claims carefully. The RBI ordered the bank to stop taking deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 23.

Paytm Payments Bank faces another setback as the Employees’ Provident Fund Organization (EPFO) instructs its staff to handle claims related to the subsidiary with caution.

This further tarnishes Paytm Payments Bank’s reputation, which has been struggling recently. The government agency that manages employee provident funds is concerned due to the EPFO’s worries about the bank’s trustworthiness and compliance.

EPFO, under the Ministry of Labour and Employment, issued a circular, “Following February 23, 2024, field officers should not accept Paytm Payment Bank claims. Video publicity should be launched to promote this development.”

The RBI ordered the Paytm Payments Bank to stop taking deposits or top-ups in client accounts, wallets, FASTags, and other instruments after February 29 on January 31.


Paytm Payments Bank independent director quits.

OCL partners with Paytm Payments Bank Limited (PPBL). One97 Communications holds 49% of PPBL’s paid-up share capital directly and through its subsidiary. Vijay Shekhar Sharma owns 51% of the bank. RBI took action against Paytm as it repeatedly violated regulatory standards despite nudges.

Paytm Payments Bank was barred from opening new accounts and wallets by RBI on June 19, 2018, due to regulatory concerns. This ban was removed on December 27, 2018, with effect from December 31, 2018.

After an RBI order restricted Paytm Payments Bank’s operations, independent director Manju Agarwal resigned. Agarwal quit on February 1, a source said. According to media sources, “Paytm Payments Bank independent director Manju Agarwal has resigned from the company’s board after RBI order.”

Conclusion

EPFO advises Paytm Payments Bank to handle Paytm subsidiary claims with prudence. The move follows worries about the bank’s reliability and compliance. Field officials were instructed by the EPFO to stop receiving Paytm Payment Bank claims until February 23, 2024. The RBI ordered the bank to stop taking deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. After an RBI order restricted Paytm’s operations, independent director Manju Agarwal resigned.

Sunil Pandey

The business professional who loves penning down his thoughts/ insights on business, entrepreneurship, & startups. His ability to break down complex business concepts into easy & concise write-ups makes him a wonderful author. He believes that writing is a powerful tool for communication and education.

Sunil Pandey
Sunil Pandey
The business professional who loves penning down his thoughts/ insights on business, entrepreneurship, & startups. His ability to break down complex business concepts into easy & concise write-ups makes him a wonderful author. He believes that writing is a powerful tool for communication and education.

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