PayTm FASTag To Stop Working After Feb 28? Here's What To Do

Paytm faces restrictions by RBI, barring funds acceptance in Paytm Payments Bank due to compliance issues; FASTags and wallet deposits prohibited.

PayTm is barred from accepting any funds in Paytm Payments Bank accounts, as the Reserve Bank of India has imposed restrictions. The action comes following a compliance validation and system audit reports. In simpler words, users are not allowed to add any amount of money in their FASTags and wallet accounts. The Indian Highways Management Company, an arm of the National Highway Authority of India, which deals with toll collection related affairs, has also put a restriction on Paytm for issuing or registering new FASTags.

Under the Section 35A of the Banking Regulation Act, 1949, Paytm Payments Bank Limited, the restriction is imposed. Moreover, the Reserve Bank of India has revealed that nodal accounts of One97 Communications and Paytm Payments Service Limited will terminate on or before 29 February 2024.

Should Paytm FASTag Users Be Worried?

Well, we are still awaiting a reply from Paytm on the matter. However, it is expected that the remaining balance of the FASTags could be reverted to the user’s source accounts if the fintech institute decides to pull the plug on its service.

As of now, users can utilize the FASTags unless further notice on the termination of service of the existing balance in the wallet.

The withdrawal of the amount from the wallet, FASTags, or National Common Mobility Card can be done. In March 2022, the Reserve Bank of India directed Paytm Payment Bank Limited to onboard new consumers.