EPFO Restricts Paytm Payments Bank Transactions From February 23: Here's How You Can Update Bank Details

This decision came from EPFO after the RBI's directive on January 31, which mandated Paytm Payments Bank to halt all banking operations effective February 29, 2024

Last year, EPFO instructed its banking section to permit EPF payments to be made into accounts held in Paytm Payment Bank and Airtel Payments Bank

Source : Getty

The Employees' Provident Fund Organisation (EPFO) has instructed all its field offices to refrain from accepting claims associated with bank accounts held in Paytm Payment Bank amid the Reserve Bank of India’s (RBI) restriction. This directive will be enforced starting February 23, 204, EPFO said in a circular on Thursday. Due to this restriction, subscribers of EPFO who have accounts with Paytm Payment Bank may experience delays in processing withdrawals and credit transactions.

This decision came from EPFO after the RBI's directive on January 31, which mandated Paytm Payments Bank to halt all banking operations, including deposit acceptance and payment processing, effective February 29, 2024.

During a press conference following the MPC meeting, RBI Deputy Governor Swaminathan J clarified the central bank's recent actions against Paytm Payments Bank. He explained that the crackdown stemmed from the bank's persistent failure to adhere to regulations despite repeated warnings. The decision to impose restrictions on Paytm Payments Bank's acceptance of new deposits was made after granting the company sufficient time to address its non-compliance issues.

Last year, EPFO instructed its banking section to permit EPF payments to be made into accounts held in Paytm Payment Bank and Airtel Payments Bank. However, the recent directive from the RBI prompted the EPFO to enforce limitations on deposits and credit transactions for subscribers who hold EPF accounts in Paytm Payment Bank.

Subscribers must promptly update their bank account details to ensure uninterrupted access to their Employees' Provident Fund (EPF) corpus.

Here Is How You Can Update Your Bank Account details:

• You must visit the EPFO's member portal and log in with your username and password.
• Go to the 'Manage' option located in the top menu bar, then choose the 'KYC' option from the drop-down menu.
• Now, select the document type as 'bank.'
• Enter the accurate bank account number and IFSC code according to the bank records. Click on ‘save’.
• After saving, the details will appear under the 'KYC pending for approval' tab. Now, submit the proof of the document to your employer.
• Upon verification by the employer, the status will be visible under 'Digitally Approved KYC,' and the registered mobile number will receive a confirmation SMS.