Paytm's parent company, One97 Communications, received a setback from the Reserve Bank of India (RBI), instructing Paytm Payments Bank to halt major payment services by the end of February due to persistent non-compliance issues. Despite being separate entities, the Paytm app and Paytm Payments Bank share aspects, including FASTag.
Impact on Paytm FASTag Users
As of now, all Paytm services will operate normally until February 29, 2024. However, questions arise about the fate of FASTags purchased through Paytm after this date.
FASTag and UPI ID
Each FASTag comes with a unique UPI ID, directly linked to Paytm Payments Bank for Paytm FASTag users. The recent RBI order restricts credit transactions or top-ups in customer accounts and prepaid instruments after February 29, potentially affecting services like FASTag.
Clarification from Paytm
Paytm has officially refuted rumours and assured users they can continue using existing balances on Paytm FASTag until February 29.
"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," the company stated in a post on X (Formerly Twitter).
Future Solutions for Seamless Customer Experience
While Paytm did not explicitly address the fate of FASTag IDs after February 29, it pledged to work on effective solutions for a smooth customer experience. The statement hints at potential partnerships with traditional banks to continue FASTag services.
ALSO READ | Google's Bard Advance chatbot gets upgrade with subscription plans - What we know so far
ALSO READ | Budget 2024: 50-year interest-free loans for 'Tech-Savvy Youth' | Everything you need to know
