FASTag Update: Paytm To Limit Functionality After February 29th - Here's What You Need To Do

The Reserve Bank of India (RBI) has instructed Paytm Payments Bank (PPBL) to cease accepting deposits or top-ups in customer accounts, including wallets and FASTags, from February 29. This directive follows a thorough system audit and compliance validation report conducted by external auditors. Although this primarily affects Paytm's banking services, customers can still utilize Paytm for digital payments, provided their account remains linked to an external bank, clarified the RBI.

The central bank also said, “No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime."

FASTag Update: Plan for Limited Use After Feb 29th

What is a FASTag?

FASTag is an electronic toll collection system mandated by rules for all four-wheeler vehicles, operated by NHAI. It utilizes RFID technology for toll payments through prepaid wallets.

As of February 29, what will occur with your Paytm FASTag? 

Customers with Paytm FASTags are permitted by the RBI to utilize their remaining balances, but they cannot reload funds onto these FASTags starting March 1. 

Paytm stated, “You can continue using the existing balances on your Paytm FASTag. We are actively working on solutions to ensure a smooth customer experience and will provide updates accordingly.”