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Amidst mounting challenges, Paytm Funds Financial institution finds itself embroiled in yet one more setback because the Workers’ Provident Fund Group (EPFO) has issued a directive instructing its officers to train warning when dealing with claims linked to the Paytm subsidiary.
This improvement casts additional shadows on the repute of Paytm Funds Financial institution, which has been going through a sequence of hurdles in current occasions. The EPFO’s transfer alerts issues over the reliability and compliance requirements of the financial institution, prompting a cautious strategy from the federal government physique chargeable for managing worker provident funds.
EPFO points round
In a round, the EPFO, which comes beneath the Ministry of Labour and Employment, acknowledged, “All the sector officers are suggested to chorus from accepting claims related to financial institution accounts in Paytm Cost Financial institution w.e.f February 23, 2024. A vide publicity ought to be initiated to lift consciousness about this modification.”
This comes after the RBI on January 31 directed the Paytm Funds Financial institution to cease accepting deposits or top-ups in buyer accounts, wallets, FASTags and different devices after February 29.
Paytm Funds Financial institution’s unbiased director resigns
Paytm Funds Financial institution Restricted (PPBL) is an affiliate of One97 Communications Restricted (OCL). One97 Communications holds 49 per cent of the paid-up share capital (straight and thru its subsidiary) of PPBL. Vijay Shekhar Sharma has a 51 per cent stake within the financial institution. RBI mentioned that persistent non-compliance by Paytm with the regulatory tips regardless of nudges over a time frame finally led to stern motion towards the fintech.
RBI on June 19, 2018, prohibited Paytm Funds Financial institution from opening any new account and pockets with impact from June 20, 2018, on account of supervisory issues, which had been lifted by RBI on December 27, 2018, with impact from December 31, 2018.
In the meantime, Paytm Funds Financial institution unbiased director Manju Agarwal is learnt to have resigned from the board after an RBI order imposed restrictions on the financial institution’s operations. In line with a supply, Agarwal resigned with impact from February 1. “Paytm Funds Financial institution unbiased director Manju Agarwal has resigned from the corporate’s board after RBI order,” information company PTI reported citing sources.
(With PTI inputs)
ALSO READ: Defined: How RBI restrictions on Paytm Funds Financial institution will affect clients
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