- FASTag by Paytm Payments Bank usable for toll payments with existing balance after March 15.
- No further funding or top-ups permitted for Paytm Payments Bank FASTagspost-March 15.
- NHAI excludes Paytm Payments Bank from list of authorized banks for FASTag services.
- Users advised to procure FASTag from other banks to avoid disruptions.
- RBI clarifies closure and refund process for Paytm Payments Bank FASTag.
- Regulatory actions against Paytm Payments Bank prompt changes in FASTags policies.
- Understanding FASTag functionality and its significance in toll payments.
- Compliance with RBI guidelines crucial for financial services users.
RBI Clarifies FASTag Policy for Paytm Payments Bank :
The Reserve Bank of India has offered clarifications on the use of FASTag issued by Paytm Payments Bank after March 15. According to the RBI FAQ published on February 16, customers can continue to use their existing FASTag balance to pay tolls.
No more recharges or top-ups are permitted after March 15 :
Paytm Payments Bank will no longer accept additional cash or top-ups for FASTag from March 15, 2024. To reduce inconvenience, the RBI recommended getting a fresh FASTag issued by another bank.
NHAI Response and Updated List of Authorised Banks :
The National Highway Authority of India (NHAI) has removed Paytm Payments Bank Ltd (PPBL) from its list of 30 authorised banks for FASTag service due to regulatory action. The NHAI’s amended list now includes banks such as Airtel Payments Bank, Axis Bank, and Federal Bank, among others.
Process of Dealing with Paytm Payments Bank FASTags :
The RBI has confirmed that from March 15, users would be unable to top up or recharge their FASTags issued by Paytm Payments Bank. The credit balance transfer tool is also unavailable. Users must cancel their old FASTags and get a reimbursement from their bank.
Understanding FASTag and its functionality :
FASTag uses Radio Frequency Identification (RFID) technology to enable toll payments while vehicles are moving. The RFID chip, mounted on the vehicle’s windscreen, allows for direct toll payments from the associated account. FASTag is available at a number of toll plazas across the country, making toll transactions more convenient.
Regulatory Action Against Paytm Payments Bank :
The controversy involving Paytm Payments Bank emerged after the RBI imposed major business limitations on January 31. These restrictions included limits on new deposits and credit transactions, as well as a ban on new customer onboarding beginning in March 2022.
The Reserve Bank of India’s latest comments on FASTag usage with Paytm Payments Bank have important ramifications for consumers. Users must convert to FASTags issued by other banks by March 15, 2024, to ensure ongoing toll payments. The removal of Paytm Payments Bank from the NHAI’s list of authorised banks emphasises the need for users to explore alternate options. Understanding how to deal with Paytm Payments Bank FASTags, including closure and refund requests, is critical for affected users. Finally, this regulatory action emphasises the necessity of compliance and following norms in the financial services industry.