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.
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.
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.