RBI Urges FASTag Users To Shift To Other Banks; Here Are Some Explained FAQs For Customers

The Reserve Bank of India (RBI) has set a March 15 deadline for customers and merchants associated with Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks. The central bank's move comes as part of its effort to prompt the beleaguered entity to wind down most of its operations, including deposit and credit transactions. This development also impacts FASTag users, as the RBI has issued a set of guidelines regarding the usage of FASTags issued by Paytm Payments Bank.

According to the RBI's frequently asked questions (FAQs), FASTag users with accounts in Paytm Payments Bank can continue to use their FASTags to pay tolls up to the available balance. However, the FAQs make it clear that no further funding or top-ups will be allowed in FASTags issued by Paytm Payments Bank after March 15, 2024. To avoid inconvenience, the RBI strongly advises customers to procure a new FASTag issued by another bank before the stipulated deadline.

FASTag, an electronic toll collection system operated by the National Highways Authority of India (NHAI), uses Radio Frequency Identification (RFID) technology to enable toll payments directly from linked bank accounts. In light of the RBI's directive, users are urged to make the necessary arrangements promptly.

For hassle-free travel, the Indian Highways Management Company Ltd (IHMCL), the toll-collecting arm of NHAI, has recommended purchasing FASTags from 32 authorized banks, excluding Paytm Payments Bank. The list of authorized banks includes Airtel Payments Bank, Allahabad Bank, Bank of Baroda, HDFC Bank, ICICI Bank, IDBI Bank, Punjab National Bank, State Bank of India, Yes Bank, and others.

The RBI has also clarified that after March 15, 2024, users will not be able to recharge or top-up their FASTags issued by Paytm Payments Bank. To address concerns about credit balance transfer, the central bank stated that this feature is not available in the FASTag product. Users are advised to close their old FASTags issued by Paytm Payments Bank and request a refund from the bank.

In a broader context, the RBI emphasized that customers of Paytm Payments Bank can freely withdraw or utilize balances from their accounts, including savings and current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, without any restrictions, up to their available balance, even beyond the March 15 deadline.

In tandem with the RBI's announcement, the IHMCL has encouraged FASTag users to complete the 'Know Your Customer' (KYC) process for their latest FASTags, following the guidelines laid out by the RBI. The IHMCL has also reemphasized its recommendation for users to procure FASTags from the list of authorized banks, ensuring a smooth and uninterrupted travel experience.

The list of banks authorized for issuing FASTags includes Union Bank of India, Thrissur District Cooperative Bank, South Indian Bank, Saraswat Bank, Nagpur Nagrik Sahkari Bank, Kotak Mahindra Bank, Karur Vyasya Bank, J&K Bank, IndusInd Bank, Indian Bank, IDFC First Bank, FINO Bank, Equitable Small Finance Bank, Cosmos Bank, City Union Bank Ltd, Central Bank of India, Canara Bank, Bank of Maharashtra, AU Small Finance Bank, and Axis Bank.

As the March 15 deadline approaches, users are advised to act promptly, ensuring a seamless transition to alternative banking options for their FASTag services. The RBI's FAQs serve as a comprehensive guide, addressing concerns and providing clarity on the transition process for both customers and merchants associated with Paytm Payments Bank.