Most Paytm Payments Bank FASTag Users Switching To HDFC Bank, Axis Bank

According to sources familiar with the matter, most of Paytm Payments Bank's existing FASTag customers are transitioning to the FASTag services offered by HDFC Bank or Axis Bank following the Reserve Bank of India's (RBI) restrictions on Paytm Bank.

The migration process is reportedly proceeding smoothly, as customers have multiple options for FASTag services from various banks.

"We've observed FASTag customers moving their accounts to several banks, but a significant number have opted for HDFC Bank and Axis Bank. The migration process is still in its early stages, and customers have a variety of banks to choose from," mentioned a senior executive from Paytm, who preferred to remain anonymous.

In compliance with the RBI guidelines regarding restrictions on Paytm Payments Bank, customers of the bank's FASTag services will no longer be able to recharge or top up their balances after 15 March 2024. However, they can continue using their existing balance to pay tolls beyond this date.

"NPCI has provided a list of 39 banks for customers to choose from. The selection of a bank is entirely based on customer preference," added another source.

FASTag, managed by the National Highways Authority of India (NHAI), facilitates electronic toll collection through Radio Frequency Identification (RFID) technology, deducting toll payments directly from linked prepaid or savings accounts.

Email inquiries sent to Paytm, HDFC Bank, and Axis Bank remained unanswered at the time of publishing.

Changes in FASTag

Subsequently, on March 13, the National Highways Authority of India (NHAI) advised Paytm FASTag users to obtain a new FASTag from another bank before March 15, 2024. This step aims to avoid penalties or additional fees while using National Highways, as per the Ministry of Road Transport & Highways (MoRTH). For further assistance or queries related to Paytm FASTag, users are encouraged to contact their respective banks or refer to the frequently asked questions (FAQs) on the Indian Highways Management Company Ltd website, according to MoRTH. NHAI has urged all Paytm FASTag users to take proactive steps to ensure seamless travel experiences on National Highways nationwide.

RBI Restrictions

On January 31, the RBI imposed significant business restrictions on Paytm Payments Bank, including a prohibition on accepting fresh deposits and conducting credit transactions after February 29. The regulatory action was prompted by major irregularities in Know Your Customer (KYC) procedures, posing serious risks to customers, depositors, and wallet users.

In February 2023, the RBI advised both customers and merchants of Paytm Payments Bank to transfer their accounts to other banks by March 15. The central bank clarified that PPBL customers could withdraw or utilize their balances from various accounts, including savings accounts, current accounts, prepaid instruments, FASTags, and national common mobility cards, without restrictions, even after March 15, up to their available balance.