RBI unlikely to review action against PayTm, end of road for its FASTags
- RBI had earlier directed to stop deposits or top-ups in any customer accounts, wallets, FASTags managed by PayTm Payments Bank.
PayTm FASTag owners will soon be required to issue new tags from other banks as last chance to turn around RBI's order against PayTm Payments Bank is also gone. The central bank today has literally refused to review its order to stop PayTm Payments Bank from February 29. The RBI had ordered the payments bank subsidiary of One 97 Communications to stop accepting fresh deposits in its accounts from March this year. Among other things, the PayTm Payments Bank also issues FASTags to vehicle owners.
Shaktikanta Das, RBI Governor, has ruled out reviewing its action against PayTm on Monday. Speaking to reporters, Das said the central bank has ‘hardly any room’ to review its earlier order due to the digital payment app's persistent non-compliance with RBI's guidelines. This means that PayTm FASTag users will not be able to add money to the wallet to continue with its service. However, the PayTm FASTags will continue to work if it has sufficient balance and its KYC is completed.
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Also Read : Not sure if you have completed your FASTag KYC? Here's how to check and update
The National Highways Authority of India (NHAI) had earlier issued a deadline to complete KYC details of FASTag accounts. NHAI had said FASTags with valid balances but with incomplete KYC will be deactivated after the deadline as part of its One Vehicle, One FASTag initiative. It aims to discourage use of same FASTag for multiple vehicles. The last date to update KYC of FASTags is February 29.
Also Read : How to deactivate Paytm FAST, apply for a fresh one: A step by step guide
Here are the answers to some of the frequently asked questions regarding PayTm FASTags and its future:
Will PayTm FASTags work after February 29?
The answer is both yes and no. Yes for those who have sufficient balance in their PayTm FASTag accounts. The restrictions on PayTm Payments Bank will mean you will not be able to recharge PayTm FASTags after February 29 deadline. The RBI has said that one will not be able to top up or recharge FASTags or PayTm wallets from March this year.
(To purchase a new FASTag, click here)
Can you port PayTm FASTag to other approved banks?
PayTm FASTags, or any FASTag, cannot be ported from one bank to another. The only way to avoid situation where you do not have a valid FASTag is to buy another one from the other authorised banks.
Should you buy FASTag from other banks to continue enjoying the service?
As of now, chances are slim that PayTm FASTags will work from March unless one has enough balance. Once that is exhausted, it is better to buy another FASTag from a different bank.
Also Read : GPS-based toll collection to replace FASTags within months, hints Nitin Gadkari
How to apply for fresh FASTag?
Applying for a new FASTag for your vehicle can be done easily through online banking. One can select from 23 banks who are registered to issue FASTags. Almost all of these banks allow customers to buy FASTags online.
Can you use PayTm to recharge FASTags by other banks?
It depends on how PayTm modifies its app. It currently offers a dedicated section for FASTags where one can recharge using the wallet or linked bank accounts. However, it is not clear yet if the feature will continue to allow top-ups through other banks. To be on a safer side, one can use other third-party apps like Google Pay and PhonePe to continue recharging FASTags.
