What to do with your Paytm FasTAG after 29th Feb?
If you have been following the finance news of late, you would be aware that RBI has put limitations on the functioning of Paytm Payments Bank. Following suit, even the NHAI has imposed restrictions on the operations of PayTM. From that perspective, you cannot use PayTM FasTAG after February 29, 2024. So, what to do with your PayTM FasTAG after the date? Let us try finding out.
After the Reserve Bank of India imposed restrictions on the Paytm Payments Bank, the National Highways Authority of India (NHAI) removed PayTM from the list of authorised banks to issue new FasTAGs. Thus, beginning February 29, you cannot use PayTM services to buy your new FasTAG. So, what should you do with your existing FASTag with PayTM? Let us find out. RBI and PayTM Tussle - A Recap
It all began during the last week of January 2024. On January 31, 2024, RBI issued an order that directed the Paytm Payments Bank to stop accepting deposits and top-ups from its customers. The restriction will come into force from February 29, 2024. 
As per the order from RBI, Paytm Payments bank cannot accept any sort of deposits from customers which include client wallets, FASTags, accounts, or other devices - on or after February 29, 2024. If the accounts have the amount available in their accounts, customers may use the amount from your account. This will include savings bank accounts, current accounts, prepaid goods, FASTag, and National Common Mobility Card.
You can ask Paytm Payments bank for a refund, cashback, or interest at any time. As per the official statement from the Reserve Bank of India, "The direction followed persistent non-compliances and continued material supervisory concerns." What does that mean for Paytm FASTag users?
So, what would that mean for the Paytm FASTag users? What would that mean if your Paytm FASTag already has money left in it? How would this affect the estimated 20 million-plus Paytm Fastag users?
That would mean you will need to buy new RFID (radio frequency identification) stickers. Your FASTag will become inoperative from March 15, 2024. There are more than 70 million FASTag users in India and of them, Paytm Payments Bank claims to have over 30% of users.
But, you need not worry about it if you already have a balance left in your Paytm FASTag or wallet. Paytm has gone on record stating that "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. "
But you cannot load money into your Paytm FASTag or your wallets after March 15. However, Paytm does not specify how the users can continue using their Paytm FASTags operational. You can't recharge it using your Paytm wallet, either. RBI has also barred a good number of banking services. That would make your Paytm Fastag practically unusable after March 15, 2024, until the time you exhaust your Paytm wallet balance.
However, it may be noticed that Paytm users can use the existing balance in their Paytm account. This includes your PPBL account, Paytm Wallet, or FASTag with no issues whatsoever until March 15, 2024. The directive from the RBI only bars top-ups and deposits of any nature in any sort of Paytm account.Will PayTM services continue to exist?
The One97 Communications Limited (OCL), the parent company of Paytm has stated the stock exchanges stating that the order from the Reserve Bank of India will not impact the services of the company.
The company informed that "Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited. The next phase of OCL's journey is to continue to expand its payments and financial services business, only in partnerships with other banks,"
This would perhaps indicate that Paytm will now partner with other banks to avoid any sort of disruption to its services.
Update: There has been no news of seamless migration till now, so it is better to surrender the current FasTAG and apply for a new one with another provider. What should the PayTM FASTag users do going forward?
For now, you will need to exhaust your FASTag balance and register for another FASTag service. Deactivate your PayTM FASTag and delink your vehicle from the tag.
To close your Paytm FASTag, follow the steps here below - The Concluding Thoughts
Well, that should have answered the queries that you had in your mind about the Paytm FASTag that you already own. If you have one, you can exhaust the balance before March 15, 2024. However, you will not be able to top up your FASTag balance after that date. Since every FASTag comes with a UPI ID associated with the Paytm Payments Bank, we would recommend closing your FASTag and then delinking your vehicle from it.
