Paytm Ban: How to deactivate Paytm FASTags and buy a new one
With the RBI ban on Paytm, you must be wondering about its impact, especially on Paytm FASTag. Let's find out how to deactivate Paytm FASTag in this article
FASTags have made travelling on India's highways a breeze by enabling automatic toll payments. However, recent restrictions by the Reserve Bank of India (RBI) on Paytm Payments Bank Ltd. (PPBL) will close Paytm FASTag operations, meaning it’s in users’ best interests to deactivate Paytm FASTag and get a new one.
This situation could also arise for various reasons, such as changing your vehicle, your FASTag not working correctly, or you simply want to use a different provider due to any new changes. In this blog, we will help you deactivate Paytm FASTag and guide you through getting a new one, ensuring your road trips stay smooth and hassle-free.
But first, what’s the situation surrounding the ban on Paytm?
RBI ban on Paytm and its impact on FASTag Paytm
Let’s break down the Paytm ban and its impact on services offered by Paytm:
Starting from March 2024, Paytm Payments Bank is required to halt all new deposits into its accounts or digital wallets. This move is a response to ongoing issues with the bank's compliance with supervisory concerns despite RBI's repeated notices to address these problems.
Paytm Payments Bank isn't just any bank; it's a big part of what makes Paytm tick. Owned by Paytm itself (49 percent) and its CEO Vijay Shekhar Sharma (51 percent), this bank is where all the money in Paytm's 330 million wallets sits. Paytm is a vital part of the digital payment ecosystem in India, facilitating everyday transactions.
The RBI's directive means the bank is now barred from accepting new money, extending credit, or processing fund transfers, directly impacting various services, including the functionality of FASTags.
The prohibition on new deposits affects FASTags, which rely on these wallets for the electronic collection of toll charges on highways. Although the funds already in the FASTags might not be immediately impacted, the inability to add more money could lead to complications for users who depend on Paytm for their toll payments.
Paytm has responded to the RBI's directive by assuring its customers and partners that the Paytm app and its services will continue to operate as normal.
The company is also seeking new banking partners to ensure that its services, including FASTag transactions, remain uninterrupted, aiming to minimise the impact on its operational capabilities and customer transactions.
For those relying on Paytm for FASTags, this development might necessitate looking for alternative ways to recharge their FASTags or even considering switching to other service providers to prevent any inconvenience during their travels.
Let’s understand how to do that.
Can you port your FASTag Paytm to another bank?
Unfortunately, transferring the balance directly from a Paytm FASTag to a new FASTag obtained from another bank is impossible. The FASTag product does not come with a credit balance transfer feature, which means any FASTag issued by the Paytm Payments Bank should be closed, and you should request a refund.
Is it mandatory to deactivate Paytm FASTag?
If you buy a new FASTag, it is essential that you close your Paytm FASTag or any other old FASTag account. The NHAI (National Highways Authority of India) has brought forth the 'One Vehicle, One FASTag' initiative so one tag can not be used for multiple vehicles, ensuring efficient toll collection. Further, only the latest FASTag account will be active for a vehicle and all previous accounts will be blacklisted.
Therefore, Paytm FASTag users are encouraged to procure a new FASTag entirely from a different bank before the cutoff date to avoid inconvenience. This means effectively, you cannot "port" your FASTag Paytm to another bank but will need to close the existing FASTag with Paytm and apply for a new one with a different provider.
Deactivate the Paytm FASTag account from the app
Follow these steps to disable Paytm FASTag :
- Open the Paytm app
- Go to your profile
- Navigate to help and support
- Select the FASTag option under 'banking services and payments'
- Raise a deactivation request using the 'chat with us' option
Deactivate the Paytm FASTag account from the portal
Follow these steps to disable Paytm FASTag :
- Log in to the portal using your credentials
- Input the required details for verification
- Access the 'help and support' section
- Select the option 'I want to close my FASTag profile.
Ways to buy new FASTag online
While PPBL is no longer an authorised FASTag provider, it is available for purchase through any banks approved by NETC (National Electronic Toll Collection). It is also available on NHAI's (National Highways Authority of India) designated app.
How you can buy a new FASTag online
Here are some of the banks you can obtain FASTag from:
- Airtel Payments Bank
- AU Small Finance Bank
- Axis Bank
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- Equitas Small Finance Bank
- Federal Bank
- FINO Payments Bank
- HDFC Bank
- IDBI Bank
- IDFC First Bank
- IndusInd Bank
- Kotak Mahindra Bank
- Nagpur Nagarik Sahakari Bank
- State Bank of India
- Union Bank of India
- Yes Bank Ltd
Steps for getting a new FASTag from NHAI
- Download the 'My FASTag' app from the Apple App Store or Google Play Store.
- Access the 'buy Fastag' option within the app.
- A link to Amazon or Flipkart for purchasing will appear.
- Scan the QR code provided, follow the instructions, and proceed to activate the FASTag.
Frequently Asked Questions (FAQs)
Is Paytm closing?
Starting from February 29, 2024, Paytm Payments Bank will be unable to accept deposits, engage in credit transactions, or replenish customer accounts, prepaid cards, wallets, FASTags, NCMC (National Common Mobility Cards), or any other form of customer account.
Is FASTag good or bad?
FASTag is generally regarded as beneficial due to its convenience in electronic toll collection, significantly reducing the need to wait in long lines at toll booths.