Paytm FASTag: RBI clarifies the usage of Paytm FASTags for toll payments, and urges transition to other banks before March 15 deadline.
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RBI FAQs Provide Clarity on Paytm FASTag Usage:
The Reserve Bank of India (RBI) has recently issued clarifications regarding the usage of FASTags issued by Paytm Payments Bank (PPBL) for toll payments on Indian highways. The FAQs released by RBI provide valuable insights into the future of Paytm FASTags amidst concerns over the bank’s operations and customer accounts.
Continued Usage Until March 15, 2024:
According to the RBI FAQs, users can continue utilizing their Paytm FASTags to pay tolls until March 15, 2024, or until the available balance runs out, whichever comes first. However, post this deadline, no further funding or top-ups will be permitted on FASTags issued by Paytm Payments Bank. This move is part of the RBI’s effort to streamline operations and ensure a smooth transition for customers.
Transition Advised:
To mitigate the inconvenience, the RBI advises users to procure a new FASTag issued by another bank before the March 15 deadline. The list of authorized banks includes prominent names such as State Bank of India, HDFC Bank, and ICICI Bank, among others, totaling 32 institutions. Notably, Paytm Payments Bank is excluded from this list, urging users to shift their accounts to other banks to avoid disruptions in toll payments.
Balance Transfer Not Feasible:
Additionally, the RBI clarifies that balance transfer from old Paytm FASTags to new ones is not feasible. Customers are advised to close their old FASTag accounts with Paytm Payments Bank and request a refund from the bank. Despite these measures, the RBI ensures that customers can withdraw or utilize their balances from various accounts, including savings accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, without restrictions.
IHMCL Emphasizes KYC Compliance:
In parallel, the Indian Highways Management Company Ltd (IHMCL) has emphasized the importance of completing the ‘Know Your Customer’ (KYC) process for FASTag users, aligning with RBI guidelines. This step aims to enhance security and regulatory compliance within the FASTag ecosystem.
Conclusion:
As the deadline looms, stakeholders are encouraged to stay informed and initiate the necessary steps to ensure compliance with regulatory requirements. Amidst these transitions, the focus remains on facilitating convenient and secure toll payments for highway users across the country.
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