India's state-managed social security fund will no longer accept claims via Paytm Payments Bank accounts starting February 23, following regulatory constraints imposed by the country's central bank due to persistent irregularities. The Employees' Provident Fund Organisation (EPFO) issued an order instructing officers to reject claims associated with Paytm Payments Bank accounts, an affiliate of One 97 Communications, as reviewed by Reuters.

The directive, issued by the EPFO under India's Ministry of Labour and Employment, follows the Reserve Bank of India's recent mandate to halt new deposits in Paytm Payments Bank accounts or digital wallets from March, citing regulatory apprehensions and non-compliance with regulations. This move marks a significant shift since the EPFO had permitted Paytm Payments Bank to process claims in November 2023. With a substantial fund corpus covering nearly 300 million workers, the EPFO's decision underscores the escalating scrutiny and regulatory pressures surrounding digital payment platforms in India.