Curious about the repercussions of the RBI ban on Paytm and its effect on Paytm FASTag? Discover the process of deactivating Paytm FASTag in this article.
FASTags have revolutionized highway travel in India by facilitating seamless automatic toll payments. However, recent regulatory measures by the Reserve Bank of India (RBI) targeting Paytm Payments Bank Ltd. (PPBL) will lead to the cessation of Paytm FASTag services. Consequently, it becomes imperative for users to deactivate their Paytm FASTags and procure replacements.
Instances necessitating such actions may arise due to various factors, including vehicle changes, malfunctioning FASTags, or preferences for alternative providers amidst regulatory shifts. In this blog post, we offer a comprehensive guide to deactivating Paytm FASTags and acquiring new ones, ensuring uninterrupted and stress-free road journeys.
Before delving into the deactivation process, let’s explore the context surrounding the Paytm ban.
The RBI’s ban on Paytm and its effect on Paytm’s FASTag service
Let’s dissect the Paytm ban and its ramifications on Paytm’s services:
Commencing March 2024, Paytm Payments Bank faces a mandate to cease all new deposits into its accounts and digital wallets. This action follows persistent compliance issues with supervisory directives, despite repeated notices from the RBI urging rectification.
As an integral component of Paytm’s infrastructure, Paytm Payments Bank, jointly owned by Paytm (49%) and its CEO Vijay Shekhar Sharma (51%), serves as the repository for funds across 330 million wallets. Paytm plays a pivotal role in India’s digital payment landscape, facilitating everyday transactions.
The RBI’s directive prohibits the acceptance of new deposits, extending credit, and processing fund transfers, directly impacting various services, including FASTag functionality.
This directive affects FASTags, reliant on Paytm wallets for toll charge collections on highways. While existing funds in FASTags may remain unaffected initially, the inability to add funds could pose challenges for users dependent on Paytm for toll payments.
In response, Paytm assures customers and partners that its app and services will continue without interruption. The company actively seeks new banking partners to ensure uninterrupted service provision, including FASTag transactions, minimizing operational disruptions and customer inconveniences.
For FASTag users reliant on Paytm, this development prompts exploration of alternative recharge methods or transitioning to other service providers to mitigate travel disruptions.
Let’s explore how to navigate this transition.
Is it possible to transfer your FASTag from Paytm to another bank?
Regrettably, transferring the balance from a Paytm FASTag to a new FASTag provided by another bank isn’t feasible. The FASTag service does not support credit balance transfers. Therefore, if you have a FASTag issued by Paytm Payments Bank, you must close the account and request a refund.
Is deactivating the Paytm FASTag compulsory?
When purchasing a new FASTag, it’s crucial to close any existing Paytm FASTag or other old FASTag accounts. The NHAI (National Highways Authority of India) has introduced the ‘One Vehicle, One FASTag’ initiative, ensuring that each tag is linked to a single vehicle for efficient toll collection. Under this initiative, only the most recent FASTag account will remain active for a vehicle, while all previous accounts will be invalidated.
Therefore, Paytm FASTag users are advised to acquire a new FASTag from a different bank before the specified deadline to prevent inconvenience. It’s important to note that transferring your Paytm FASTag to another bank is not possible. Instead, you must close your current FASTag account with Paytm and apply for a new one with a different provider.
Disable your Paytm FASTag account using the mobile app
Follow these steps to disable Paytm FASTag:
- Open the Paytm app
- Go to your profile
- Navigate to help and support
- Select the FASTag option under ‘banking services and payments’
- Raise a deactivation request using the ‘chat with us’ option
Deactivate the Paytm FASTag account from the portal
Follow these steps to disable Paytm FASTag :
- Log in to the portal using your credentials
- Input the required details for verification
- Access the ‘help and support’ section
- Select the option ‘I want to close my FASTag profile.
Ways to buy new FASTag online
While PPBL is no longer an authorised FASTag provider, it is available for purchase through any banks approved by NETC (National Electronic Toll Collection). It is also available on NHAI’s (National Highways Authority of India) designated app.
How you can buy a new FASTag online
Here are some of the banks you can obtain FASTag from:
- Airtel Payments Bank
- AU Small Finance Bank
- Axis Bank
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Equitas Small Finance Bank
- Federal Bank
- FINO Payments Bank
- HDFC Bank
- IDBI Bank
- IDFC First Bank
- IndusInd Bank
- Kotak Mahindra Bank
- Nagpur Nagarik Sahakari Bank
- State Bank of India
- Union Bank of India
- Yes Bank Ltd
Steps for getting a new FASTag from NHAI
- Download the ‘My FASTag’ app from the Apple App Store or Google Play Store.
- Access the ‘buy Fastag’ option within the app.
- A link to Amazon or Flipkart for purchasing will appear.
- Scan the QR code provided, follow the instructions, and proceed to activate the FASTag.
