The majority of Paytm Payments Bank's existing FASTag customers are migrating to HDFC Bank or Axis Bank’s FASTag services following the Reserve Bank of India (RBI) curbs on Paytm Bank, people aware of the development told Moneycontrol.
The transition is largely progressing smoothly as the customers have many banks’ FASTag services to choose from, they said.
“We have seen FASTag customers moving their accounts to several banks but the majority have opted for HDFC Bank and Axis Bank. The process is in the early stages and customers have several banks to choose from,” said a senior executive from Paytm, who did not wish to be named.
In line with the guidelines issued by the RBI regarding restrictions on Paytm Payments Bank, the bank's FASTag users will not be able to recharge or top up their balance post March 15, 2024. However, they can use their existing balance to pay the toll beyond the stipulated date.
“NPCI has listed 39 banks for customers to choose from. And the choice of a bank is solely based on customer preference,” another source said.
FASTag is an electronic toll collection system in India, operated by the National Highways Authority of India (NHAI). It employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid or savings account linked to the FASTag.
Email queries sent to Paytm, HDFC Bank and Axis Bank did not elicit a response till the time of publishing the story.
Change in FASTag
After this, on March 13, the National Highways Authority of India (NHAI) advised Paytm FASTag users to procure a new FASTag issued by another bank before March 15, 2024. This will help in avoiding penalties or any double fee charges while commuting on National Highways, said the Ministry of Road Transport & Highways (MoRTH). For any further queries or assistance related to Paytm FASTag, users can reach out to their respective banks or refer to the frequently asked questions (FAQs) provided on the Indian Highways Management Company Ltd website, said MoRTH. NHAI has urged all Paytm FASTag users to take proactive measures to ensure a seamless travel experience on the National Highways across the country.
RBI restrictions
On January 31, the RBI imposed major business restrictions on Paytm Payments Bank, including a bar on accepting fresh deposits and doing credit transactions after February 29. The regulator found major irregularities in KYC, which exposed the customers, depositors and wallet holders to serious risks.
In February 2023, the RBI had advised customers as well as merchants of Paytm Payments Bank to shift their accounts to other banks by March 15. The central bank had said withdrawal or utilisation of balances by PPBL customers from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, and national common mobility cards, will be permitted without any restrictions, up to their available balance even beyond March 15.
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