RBI Clarifies FASTag Usage Amid Paytm Payments Bank Developments: FAQs, Transition Guidance, and More

In a recent update, the Reserve Bank of India (RBI) has addressed concerns regarding the use of Paytm Payments Bank (PPBL) FASTags, assuring users they can continue to pay tolls with existing balances. However, the RBI has introduced changes that impact the future usability of PPBL FASTags.

As per the RBI's FAQs, users with PPBL FASTags can use them for toll payments up to their available balance after March 15, 2024. Nevertheless, the RBI has prohibited further funding or top-ups for PPBL FASTags beyond this date. To ensure a seamless experience, the RBI recommends procuring a new FASTag from another bank before the specified deadline.

Customers are advised to note that recharging the balance on PPBL FASTags will not be possible after March 15, 2024. In response to this change, the RBI encourages users to transition to FASTags issued by other authorized banks to avoid any inconveniences.

The FAQs also address the transfer of balances from old PPBL FASTags to new ones issued by different banks. Unfortunately, credit balance transfer functionality is not available, and users will need to close their old PPBL FASTags, requesting a refund from the bank.

Furthermore, the RBI assures PPBL customers that withdrawal or utilization of balances from their accounts, including savings, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, will be permitted without restrictions even after March 15, up to the available balance.

In a related development, the Indian Highways Management Company Ltd (IHMCL), the toll collecting arm of the National Highways Authority of India (NHAI), has recommended that highway users purchase FASTags from 32 authorized banks, excluding Paytm Payments Bank, for hassle-free travel. The list of authorized banks includes Airtel Payments Bank, HDFC Bank, ICICI Bank, and others.

The IHMCL also emphasizes the completion of the 'Know Your Customer' (KYC) process for FASTags, aligning with RBI guidelines.

FASTag, an electronic toll collection system in India operated by NHAI, utilizes Radio Frequency Identification (RFID) technology, allowing toll payments directly from linked bank accounts. As the transition period approaches, users are encouraged to stay informed and make the necessary arrangements to ensure uninterrupted toll payment services.