New Delhi: If you are using a FASTag issued by Paytm for paying tolls on national highways, you will have to buy a new FASTag from another bank before February 29, 2024. This is because the Reserve Bank of India (RBI) has ordered Paytm Payments Bank, which is linked to your Paytm FASTag, to stop all customer transactions from that date.
FASTag is an electronic toll collection system that employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid account linked to it. It is affixed on the windscreen of your vehicle and enables you to drive through toll plazas without stopping for cash transactions.
However, if you have a Paytm FASTag, you will not be able to recharge it after February 29, 2024, as per the RBI’s directive. This means that once your existing balance is exhausted, your Paytm FASTag will become invalid and you will have to pay double the toll as a fine in cash.
The RBI’s action against Paytm Payments Bank is due to persistent non-compliance and ongoing supervisory concerns in the bank. The RBI has barred Paytm from offering all basic payment services, including Unified Payments Interface, IMPS, Aadhaar-enabled payments, and bill payment transactions, effective February 29.
Paytm has said that some of its products, such as FASTag, are already distributed by other banks and will continue to operate. However, it has not clarified what will happen to the existing Paytm FASTag users and their balances. It has only said that it is working on “effective solutions” to ensure a seamless customer experience.
Therefore, the best option for Paytm FASTag users is to get a new FASTag from any supported bank before the deadline. You can buy FASTag online or offline from various banks, such as Kotak, Bank of Baroda, HDFC, ICICI, etc. You can also buy FASTag from select petrol pumps, toll plazas, and e-commerce platforms, such as Amazon. You will need to submit your vehicle registration certificate, KYC documents, and passport-size photo to get a new FASTag. You can also link your new FASTag to your existing bank account or wallet for easy recharge.
