Will your Paytm FASTag work after March 15 or is it time to change?

Will your Paytm FASTag work after March 15 or is it time to change?

The National Highway Authority of India (NHAI)shared a tweet on Thursday via the Twitter handle of FASTagOfficial and shared a list of 32 authorised banks that users could go to purchase a FASTag.Â

“Travel hassle-free with FASTag! Buy your FASTag today from below authorised banks,” Indian Highways Management Company (IHMCL), the electronic tolling arm of National Highways Authority of India (NHAI), said on its official X (formerly Twitter).

The notable name missing from that list was Paytm Payments Bank, which NHAI excluded from its latest list of 32 authorised banks for the FASTag service.Â

The exclusion of Paytm Payments Bank from the list meant more than 20 million Paytm Fastags users will be affected.Â

So does this mean you will have to change your existing Paytm FASTags? 

The Reserve Bank of India (RBI) had previously imposed restrictions on Paytm Payments Bank, prohibiting it from accepting deposits or top-ups in customer accounts, including prepaid instruments like wallets and FASTags, after February 29.

However, it increased the deadline to March 15, 2024.Â

The users of the Paytm Payments Bank were shrouded in a cloud of uncertainty about the services of the Paytm app after the directions of the RBI.Â

Addressing these concerns, Paytm released a set of FAQs assuring users that they could still use their FASTags but with some modifications. However, the crux of the matter lies in understanding how Paytm FASTags operate.

The Paytm FASTag needs to be recharged in order to be used on highway tolls. The Paytm FASTag is recharged using the Paytm Wallet. Any money that is being added to the Paytm Wallet also subsequently acts as money that can be used for the Paytm FASTag.Â

So, for reference, if a user adds Rs 1000 to their Paytm Wallet, they can use it to pay bills and also use it for their Paytm FASTag.

But since the Paytm Wallet is powered by Paytm Payments Bank, which has been directed by the RBI to stop key operations after March 15, 2024, users will not be able to top up their wallets.Â

This means that any existing balance on the Paytm Wallet can be used for FASTag toll payments, but there is no way to keep using it after that balance is exhausted.Â

There have been speculations of the Paytm Payments Bank shifting bases to other financial institutions. As per media reports, HDFC Bank and Jio Financial Services were eager to tie up with the Paytm Payment Banks.Â

If Paytm Payments Bank is able to find an ally in any of the private lenders in these turbulent times, users might be able to continue using their Paytm FASTags.Â

However, there has been no such clarification from the fintech startup.Â

Paytm’s CEO and founder Vijay Shekhar Sharma had earlier met with RBI official and Finance Minister Nirmala Sitharaman in a bid to steer the fintech company to safe shores.Â

Other banks offering FASTags

The updated NHAI list now includes banks such as 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, and Federal Bank.

Additionally, Fino Payments Bank, HDFC Bank, ICICI Bank, IDBI Bank, IDFC First Bank, Indian Bank, IndusInd Bank, J&K Bank, Karnataka Bank, Karur Vysya Bank, Kotak Mahindra Bank, Nagpur Nagarik Sahakari Bank, Punjab National Bank, Saraswat Bank, State Bank of India, Thrissur District Cooperative Bank, UCO Bank, Union Bank of India, and Yes Bank are also featured in the list.

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