EPFO bans Paytm Payments Bank: What changes for customers?
The Employees Provident Fund Organisation (EPFO) action against Paytm Payments Bank will definitely impact customers. The provident fund body which covers nearly 30 crore officers has asked officers to refrain from accepting claims linked to the bank accounts in the Paytm subsidiary.
It comes at a time when the Paytm subsidiary is under fire after the RBI asked it to stop accepting new deposits after February 29.
What changes for EPFO subscribers who have accounts in Paytm Payments Bank?
The EPFO restriction will affect timely withdrawals and credit transactions in the bank accounts belonging to Payments Bank. The action comes a year after the EPFO had allowed payments through Paytm Payments Bank and Airtel Payments Bank.
The subscribers will have to update their bank account details to be able to access the EPFO corpus.
On action against Paytm Payments Bank, the central bank’s governor Shaktikanta Das had said,”There is no worry about the system at the moment. Here we are talking about a specific institution, a specific payment bank.”
“This is a supervisory action on a regulated entity for persistent non-compliance. Such supervisory actions are invariably preceded by months and at times years of bilateral engagement, where we not only point out deficiencies but also provide more than adequate time for them to take corrective action,” the RBI had said.
However, the central bank’s deputy governor Swaminathan J said that the Paytm app will not be affected by the decision. “Just one clarification, this particular action is against Paytm Payments Bank and not to be confused with Paytm App…App is not impacted by this action,” he had said.
