Big Update For Paytm FASTag Users! Paytm Not In List Of 32 Banks That Can Issue New FASTags | Companies News


New Delhi: Trouble seems to be far from over for Paytm after the RBI’s order on curbs on Paytm Payments Bank (PPBL). Now, in a big update for Paytm FASTag Users, the road highway toll authority seemed to have removed Paytm Payments Bank from the list of authorised banks that can issue new FASTags.

The road highway toll authority has recommended that users will have to take FASTags from approved banks, specifiying a list of 32 banks, however it has excluded Paytm Payments Bank from the list. This would mean that over 20 million Paytm FASTag users will have to now obtain new RFID stickers.

The Reserve Bank of India had few days ago issued a crucial directive to Paytm Payments Bank (PPBL) ordering the lender to cease taking deposits or top-ups in any user accounts, wallets, FASTTags, and other instruments after February 29. Customers may, however, request a refund, cashback, or interest at any time.

According to a statement from the central bank, the directive comes in response to ongoing serious supervisory concerns and chronic non-compliances. The RBI had immediately prohibited PPBL from accepting new clients on March 11, 2022. However, the Paytm group company PPBL remained silent over the RBI’s directive against the bank.

“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. After February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” the RBI said. Additionally, its users are allowed to take out or use the balances from any of their accounts, including current accounts, savings bank accounts, prepaid cards, FASTags, and National Common Mobility Cards, as long as they have the money available.

“No other banking services, other than those … Like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc), BBPOU and UPI facility should be provided by the bank after February 29, 2024,” it added.

Additionally, the RBI stated that One97 Communications Ltd. and Paytm Payments Services’ “nodal accounts” must be closed as soon as possible and, in any event, no later than February 29, 2024.

Despite owning a 49% share in Paytm Payments Bank Limited, One97 Communications—the firm that owns the Paytm brand—classifies the latter as an associate rather than a subsidiary.

According to the RBI, all pipeline transactions and nodal accounts (pertaining to all transactions started on or before February 29, 2024) must be settled by March 15, 2024, at which point no more transactions would be allowed.

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