No FASTag recharge to be allowed via Paytm payment bank post March 15

FASTag_pic

The Reserve Bank of India clarified that FASTag issued by Paytm Payments Bank can continue to use FASTag to pay tolls up to the available balance post-March 15. The clarification was issued in the Frequently Asked Questions (FAQ) released by the central bank on February 16.

However, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15.

"It is suggested that you procure a new FASTag issued by another bank before March 15, 2024, to avoid any inconvenience," said RBI FAQ.

The National Highway Authority of India (NHAI) has removed Paytm Payments Bank Ltd (PPBL) from its list of 30 authorised banks for FASTag service as the company faces regulatory action over alleged violation of rules.

Paytm to partner with Axis Bank for settlement of merchant payments

The banks the NHAI has listed for FASTag services include Airtel Payments Bank, Allahabad Bank, AU Small Finance Bank, Axis Bank, Bank of Baroda, Bank of Maharastra, Canara Bank, Central Bank of India, City Union Bank, Cosmos Bank, Equitias Small Finance Bank and Federal Bank.

RBI further clarified that one can not be able to top-up or recharge FASTag issued by Paytm Payments Bank post-March 15.

"Credit balance transfer feature is not available in the FASTag product. Therefore, you will have to close your old FASTag issued by Paytm Payments Bank and request the bank for a refund, "RBI further added.

FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly while the vehicle is in motion.

The FASTag (RFID Tag) chip is affixed on the windscreen of the vehicle and enables a customer to make toll payments directly from the account which is linked to FASTag. FASTag is operational at over 750 toll plazas, including all national highway toll plazas and over 100 state highway toll plazas across the country.

No concessions to Paytm Payments Bank; Bank likely to become dormant if RBI doesn’t lift curbs on March 15

The dispute over Paytm emerged after the Reserve Bank of India (RBI) on January 31 imposed major business restrictions on Paytm Payments Bank, including accepting fresh deposits and doing credit transactions after February 29. The central bank had in March 2022 barred Paytm Payments Bank from onboarding new customers.