What are the details about Paytm FASTag’s functionality after February 29?
Paytm parent One97 Communications received a major jolt from the Reserve Bank of India (RBI) on Wednesday, ordering Paytm Payments Bank to shut down key payment services by the end of February due to “ongoing non-compliance issues”. Although the Paytm app and Paytm Payments Bank are two different entities, an app like FASTag also shares common aspects.
Millions of people in India use the Paytm app, and understandably, news of a major impact on the service has caused concern. Big Questions – Will FASTags imported from Paytm continue to work? And do car owners have to buy a whole new FASTag?
Paytm FASTag – What Happens After February 29?
At the moment, one thing is clear – all Paytm services will work normally until February 29, 2024. But what happens next?
For those who don’t know, each FASTag has a unique UPI ID. For Paytm FASTag users, this UPI ID is directly linked to Paytm Payments Bank.
According to the recent RBI regulation, Paytm users will not be allowed to do credit transactions or top-ups in any customer account and prepaid instruments after February 29, 2024. It should also be noted that services such as FASTag may not work after February 29th. meaning you won’t be able to add a FASTag after the deadline later this month. However, you can use your existing balance freely until February 29.
Paytm has officially quashed these rumors and mentioned in this post on its X account, “You can continue to use the existing balances of your Paytm FASTag account. We started working with other banks in the last two years, which we are now accelerating.”
You can continue using the existing balances on your Paytm FASTag. We started our journey of working with other banks over the last two years, which we will now accelerate pic.twitter.com/clsDLVUD1N— Paytm (@Paytm) February 1, 2024
Well, technically Paytm didn’t comment on what will happen to FASTags after February 29, but it promises to work on “effective solutions” to ensure a seamless customer experience.
This statement suggests that Paytm could partner with traditional banks on its FASTag service and allow them to continue using it in their cars. We would rather wait for Paytm to make an official statement about these changes and their impact on customers in the coming weeks.
