Paytm Payments Bank's FASTag users opting for HDFC Bank, Axis Bank: Report

After the Reserve Bank of India imposed curbs on Paytm Payments Bank on operating FASTag beyond March 15, many customers are now opting for HDFC Bank or Axis Bank’s FASTag services, a report said on Wednesday. 

“We have seen FASTag users moving their accounts to several banks but the majority have opted for HDFC Bank and Axis Bank. The process is in the early stages and customers have several banks to choose from,” a senior executive from Paytm told Moneycontrol.

The central bank had imposed curbs on  Paytm Payments Bank in January this year under section 35A of Banking Regulation Act, 1949. RBI asked PPBL to stop onboarding new customers with immediate effect and barred the bank from taking fresh deposits after February 29, 2024. Later, it extended  the deadline till March 15 for the ease of customers.

The central bank had said the payments bank's FASTag users will not be able to recharge or top up their balance post March 15, 2024, but they can use the balance in their accounts to make payments.

On March 13, the National Highways Authority of India (NHAI) asked existing Paytm FASTag users to procure a new FASTag issued by another bank before March 15.

It said: “To ensure seamless travel experience and avoid inconvenience at toll plazas, NHAI has advised Paytm FASTag users to procure a new FASTag issued by another bank before March 15, 2024. This will help in avoiding penalties or any double fee charges while commuting on National Highways. In line with the guidelines issued by the Reserve Bank of India regarding restrictions on Paytm Payments Bank, the Paytm FASTags users will not be able to recharge or top-up the balance post 15th March 2024. However, they can use their existing balance to pay toll beyond the stipulated date.”

Paytm Payments Bank issued a fresh set of FAQs for users of Paytm FASTag. 

The guidelines stated:

After March 15, 2024

Paytm Payments Bank said one can continue to use your FASTag to pay at enabled toll and parking merchants’ up to the available balance in their wallets. Additionally, no further funding or top ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

The directive does not impact your existing balances and your money is safe with our Bank.

Recharging accounts
Due to RBi curbs after March 15, 2024, you will not be able to top-up or recharge your FASTag issued by Paytm Payments Bank. You can procure a new FASTag issued by another bank before March 15, 2024, to ensure a smooth transition and avoid any inconvenience.

Transfer balance
Credit balance transfer feature is not available in the FASTag product. Therefore, you will have to close your old FASTag issued by Paytm Payments Bank and request for any applicable refund by contacting our customer care, the bank said.