RBI Directs Paytm Payments Bank to Halt Deposits, FASTag Users Affected

The Reserve Bank of India (RBI) directed Paytm Payments Bank (PPBL) to stop accepting deposits or top-ups in any customer accounts, including wallets, FASTags, and other instruments after February 29 after a system audit report and compliance validation report of external auditors.

Impact on Paytm’s Banking Operations:

The move, which primarily targets Paytm’s banking operations, allows customers to still utilize Paytm for digital payments as long as their account remains connected to an external bank, RBI said.

FASTag Services Affected:

Paytm FASTag: A man points to the FASTag on his vehicle’s windshield at the toll office at Kherki-Daula toll plaza in Gurugram.

The central bank said, “No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashback, or refunds which may be credited anytime.”

In case you own a Paytm FASTag, this is what you need to know:

What is FASTag?

Rules mandate having an FASTag on the windshield of all your four-wheeler vehicles- an electronic toll collection system operated by the NHAI that uses Radio Frequency Identification (RFID) technology for making payments at the toll booths using prepaid wallets.

Post-Regulatory Directive for Paytm FASTag Users:

What happens to your FASTag after February 29?

RBI allowed Paytm FASTag customers to finish their balances, but they cannot load these instruments with more money starting from March 1.

Firm says said, “You can continue using the existing balances on your Paytm FASTag. We are working on effective solutions to ensure a seamless customer experience and will keep you updated. “

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