Going by the recent order by the Reserve Bank of India (RBI) and what Paytm has announced publicly, 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. But the company is assuring Paytm FASTag and NCMC users that they “need not worry about it”. While Paytm hasn’t shared as to how it will work around the RBI order, the company is continuing to stress that things will be usual for end users both before and after 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.
However, as most of the services offered by Paytm are in partnership with various banks and not just Paytm Payments Bank, it claims to continue to expand its payments and financial services business, only in partnerships with other banks. “We are now accelerating the plan and completely moving to other bank partners,” said Vijay Shekhar Sharma, MD, Paytm.
Paytm FASTags will work as usual till February 29, 2024 and users can continue to recharge it as well. After February 29, Paytm FASTags will work with whatever existing balance is left and once the balance amount is over then it can’t be recharged any further. But this is where Paytm may look at fixing the problem with its banking partners.
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.
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