Paytm FASTag Users May Have to Switch to Other Banks After RBI Action

Paytm FASTag Users May Have to Switch to Other Banks After RBI Action

Paytm FASTag users may face inconvenience as the National Highways Authority of India (NHAI) has removed Paytm Payments Bank from the list of banks that can issue new FASTags. This is because the Reserve Bank of India (RBI) has imposed restrictions on the bank’s operations due to “persistent non-compliance” issues.

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The RBI has ordered Paytm Payments Bank to stop accepting deposits or top-ups in any customer account, wallet, FASTag, or other instrument after February 29, 2024. The RBI has also asked the bank to close the nodal accounts of its parent company One97 Communications and Paytm Payments Services by the same date.

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Customers can still withdraw or use the balances from their Paytm accounts, but no other banking services, such as fund transfers, BBPOU and UPI facility, should be provided by the bank after February 29, the RBI said.

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Paytm Payments Bank, which has over 100 million KYC verified customers and is the largest issuer of FASTags with over 8 million units, has not issued any statement on the RBI’s directive. The bank’s founder and chairman Vijay Shekhar Sharma is also part-time chairman of the bank.

Paytm FASTag users may have to get new RFID stickers from other banks or port their existing FASTags to other banks, according to a report by Outlook India.

The report also provides the steps to port or deactivate Paytm FASTag.

Source : News 18

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