Paytm FASTag: How to deactivate, get a fresh one post RBI order

The Indian Highways Management Company (IHMCL), a subsidiary of the National Highway Authority of India (NHAI), has prohibited Paytm Payments Bank Ltd (PPBL) from issuing new FASTags. Currently, there are 32 banks on the approved list for FASTag issuance, and NHAI recommends users to obtain FASTags from these banks. Nevertheless, the Reserve Bank of India (RBI) has extended the deadline for PPBL from February 29 to March 15.

As per a recent statement by the RBI regarding Paytm Payments Bank, customers will face restrictions on making additional deposits, credit transactions, or top-ups in their accounts, including prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after March 15, 2024. The extension of this deadline from the previously set date of February 29, 2024, allows for exceptions, such as interest, cashbacks, sweep-ins from partner banks, or refunds, which may be credited at any time.

The RBI's FAQs on Paytm Payment Banks says FASTags are not interoperable, and that customers must close their PPBL accounts and request a refund to obtain a new FASTag from a different bank. Paytm FASTag customers are permitted to use their existing balances, but are constrained from adding additional funds w.e.f. March 16, says the RBI.

In response to the situation, Paytm assured users on social media that they can continue using existing balances on their Paytm FASTags and mentioned its ongoing efforts to ensure a seamless customer experience.

To deactivate a Paytm FASTag, users can follow these steps on the Paytm app:

(a) Download the Paytm app and log in.

(b) Search for 'FASTag' in the app and click on 'Manage FASTag.'

(c) Navigate to 'Help & Support' and select 'Need help with non-order related queries? And then select ‘Queries related to updating FASTag profile.'

(d) Choose 'I want to close my FASTag' and follow the subsequent steps to deactivate Paytm FASTag.

Users have multiple options for acquiring a new FASTag, including purchasing from authorised banks or ordering directly from NHAI.

The list of banks authorised by NHAI for issuing FASTags includes Airtel Payments Bank, Allahabad Bank, AU Small Finance Bank, HDFC Bank, ICICI Bank, State Bank of India (SBI), and others.

Paytm clarified that after the RBI's specified deadline, customers won't be able to deposit or add funds to their Paytm Payments Bank Account/Wallet. However, there will not be any restrictions on withdrawing funds from existing balances post-deadline.

There is uncertainty regarding the fate of these accounts, as the RBI has not specified whether another bank will acquire or migrate them. To mitigate the impact, Paytm arranged for Axis Bank to take over all the nodal bank accounts previously held by PPBL, though the RBI's FAQs do not mention any such provision.