Commuters who use Paytm Payments Bank FASTag service will not be able to make deposits to their wallet after February 29 due to restrictions imposed by the Reserve Bank of India’s (RBI). The RBI, on Wednesday, January 31, directed the Paytm Payments Bank Ltd (PPBL) to stop accepting deposits or top-ups in any customer accounts including wallets and FASTag after February 29. Customers can continue to utilise the amounts in their Paytm FASTag wallets without any restrictions, up to their available balance, the RBI has said. However, it is currently not known what alternative will be offered once the existing balance of customers gets used up after February 29.
The RBI’s statement 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.”
The statement added, “Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance.”
Paytm FASTag is an electronic toll collection system that involves a prepaid tag mounted on the vehicle's windshield. This allows commuters to pass through toll plazas without stopping. Toll charges will be automatically deducted from the Paytm Payments Bank wallet once the tag is scanned at the toll plaza. The tag is based on Radio Frequency Identification (RFID) technology and is part of the National Electronic Toll Collection (NETC) programme developed by the National Payments Corporation of India (NPCI).
The RBI’s restriction comes after a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed alleged non-compliances and material supervisory concerns in the bank, warranting further supervisory action, the RBI said in a statement on Wednesday, January 31.