Paytm issues FASTag for cars via its Payments Bank but soon the company will be restricted from operating its own service.
If you are using a FASTag from Paytm for paying tolls then you will have to buy a new FASTag from another bank before February 29, 2024. Every FASTag comes with a unique UPI ID and for Paytm FASTag users, this UPI ID is directly linked to Paytm Payments Bank.
Now, with the Reserve Bank of India (RBI) ordering Paytm Payments Bank to stop customer transactions, it effectively means you can’t recharge your Paytm FASTag after February 29. And if FASTag doesn’t work then vehicle owners will have to pay double the toll as a fine in cash.
Paytm FASTag will work as usual till February 29, 2024 and users can continue to recharge it as well. After February 29, Paytm FASTag will work with whatever existing balance is left and once the balance amount is over then it can’t be recharged any further. As FASTag can’t be ported to another bank from Paytm Payments Bank, your best bet is to get a new one from any supported bank.
“There are a set of products that the Paytm app offers to users, some products like FASTag are already distributed by other banks will continue,” Bhavesh Gupta, President and COO, Paytm was quoted saying during the conference call on Thursday.
This development has come about after a major decision by the RBI to restrict operations of the Paytm Payments bank. As per the recent RBI order, Paytm users are not allowed to do credit transactions or top-ups in any customer accounts and prepaid instruments after February 29, 2024. Technically, Paytm did not comment on what happens to FASTag IDs after February 29 but it promises to be working on “effective solutions” to ensure a seamless customer experience.
The fact that you cannot transfer the FASTag balance or move to another bank means that the existing FASTag account/ID will be rendered useless once the stipulated deadline ends, unless there is a major U-turn in the restrictions closer to the deadline later this month.