The Reserve Bank of India (RBI) directed Paytm Payments Bank (PPBL) to stop accepting deposits or top-ups in any customer accounts including wallets and FASTags and other instruments after February 29 after a system audit report and compliance validation report of external auditors. The move, which primarily targets Paytm’s banking operations, allows customers to still utilize Paytm for digital payments as long as their account remains connected to an external bank, RBI said.
The central bank said, “No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime.”
In case you own a Paytm FASTag this is what you need to know:
What is FASTag?
Rules mandate having a FASTag on the windshield of all your four-wheeler vehicles- an electronic toll collection system operated by the NHAI which uses the Radio Frequency Identification (RFID) technology for making payments at the toll booths using prepaid wallets.
What happens to your Paytm FASTag after February 29?
RBI allowed Paytm FASTag customers to finish their balances but they cannot load these instruments with more money starting from March 1.
Paytm said, “You can continue using the existing balances on your Paytm FASTag. We are working on effective solutions to ensure a seamless customer experience and will keep you updated. “
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