The Reserve Bank of India (RBI) on Wednesday directed Paytm Payments Bank (PPBL) to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29.
What happens to Paytm FASTags after February 29?
For those who are wondering if their Paytm Fastags will stop working? It won't. You can continue to use the existing balance on your Paytm FASTag. The company said that they started their journey of working with other banks over the last two years, which they are planning to now accelerate. Paytm also informed that they are working on effective solutions to ensure a seamless customer experience.
You can continue using the existing balances on your Paytm FASTag. We started our journey of working with other banks over the last two years, which we will now accelerate pic.twitter.com/clsDLVUD1N
February 1, 2024Paytm FASTag is a simple and reusable tag based on radio-frequency identification technology (RFID) that will be affixed on a vehicle's windscreen. Each FASTag is linked to a registered Paytm Payments Bank wallet / account to facilitate instant automatic deduction of toll charges. This program is part of the National Electronic Toll Collection (NETC) initiative rolled out by NPCI under the guidelines of NHAI & IHMCL.
Additional Paytm Queries Answered
Will my POS machine/Soundbox now work?
The company also informed that merchant payment services are not impacted. Their offline payment network offerings like Paytm QR, Paytm, Soundbox, Paytm Card Machine will continue as usual and they are planning to onboard new offline merchants.
Will NCMC card stop working?
Users can continue using the existing balances on their NCMC Cards. They started our journey of working with other banks over the last two years, which we will now accelerate.
Your Paytm POS and Soundbox services remain unaffected and we will continue to onboard new offline merchants. pic.twitter.com/SbrNfQIGto
February 1, 2024You can continue using the existing balances on your NCMC Cards. We started our journey of working with other banks over the last two years, which we will now accelerate pic.twitter.com/s9ixXdix2A
February 1, 2024Statement From Paytm
In a statement, Paytm's parent firm, One97 Communications Limited (OCL) has informed the following:
The recent notification not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances. OCL, as a payments company, works with various banks (not just Paytm Payments Bank), on various payments products. OCL started to work with other banks since starting of the embargo.
The company now will accelerate the plans and completely move to other bank partners. 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.
Paytm offers acquiring services to merchants in partnership with several leading banks in the country and will continue to expand third-party bank partnerships.
The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. OCL's offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well.
OCL will pursue partnerships with various other banks, to offer various payment products to its customers.
OCL's other financial services such as loan distribution, insurance distribution and equity broking, are not in any way related to Paytm Payments Bank Limited and are expected to be unaffected by this direction.
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