After March 15, there won't be any Fastag recharges available via Paytm Payment Bank

The RBI FAQ from February 16 states that after March 15, FASTag from Paytm Payments Bank may still be used to pay toll up to the available balance.

After March 15, users of the Paytm Payments Bank's FASTag may still use it to pay toll up to the amount of their available balance, according to clarification from the Reserve Bank of India. In February 16, the central bank released a frequently asked questions (FAQ) that included the clarification.

However, after March 15, FASTags issued by Paytm Payments Bank will not be eligible for further financing or top-ups.

"It is suggested that you purchase an entirely novel Fastag issued by any other bank before March 15, 2024 in order to prevent any inconvenience," the RBI FAQ said.

In light of the company's potential regulatory action for purported rule violations, the National Highways Authority of India (NHAI) has withdrawn Paytm Payments Bank Limited (PPBL) from the list of 30 recognized banks for Fastag service.

Airtel Payments Bank, Allahabad Bank, AU Small Finance Bank, Axis Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank, Central Bank of India, City Union Bank, Cosmos Bank, Equitas Small Finance Bank, as well as Federal Bank are among the banks that the NHAI has designated for Fastag services.

RBI went on to say that from March 15, users would not be able to top up or recharge their Paytm Payments Bank Fastag cards.

RBI said, "The FASTag product does not provide the credit balance transfer capability. You would thus need to cancel the previous FASTag that Paytm Payments Bank granted you and ask the bank for a refund."

With FASTag, you may pay for tolls straight from the moving car using Radio Frequency Identification (RFID) technology.

Installed on the windshield of the car, the FASTag (RFID tag) chip allows the user to pay for tolls directly from the account associated with the tag. More than 750 toll plazas nationwide, including all National Highway toll plazas and more than 100 state highway toll plazas, are using FASTag.

The Reserve Bank of India (RBI) placed significant business limitations on Paytm Payments Bank on January 31, including the inability to take new deposits and carry out credit transactions beyond February 29. This decision sparked a controversy around the app. In March 2022, the national bank outlawed Paytm Payments Bank. welcoming new clients.