by The Reserve Bank of India (RBI) has extended the deadline to March 15, 2024, for Paytm Payments Bank Limited (PPBL) to stop accepting deposits, any credit, or any top-up requests in any customer accounts, prepaid instruments, wallets, FASTags, etc.
However, Paytm has recently entered into an arrangement with Axis Bank to shift its nodal accounts from PPBL to Axis Bank. This arrangement will enable Paytm to continue its operations beyond the RBI-mandated deadline.
In a stock exchange filing dated February 16, 2024, Paytm clarified that it has successfully transferred its nodal accounts to Axis Bank by opening an escrow account. This move will ensure that Paytm can continue to offer its services, including Paytm QR, Soundbox, and card machines, without any disruptions.
Paytm emphasized that this shift in nodal accounts with Axis Bank will seamlessly replace the nodal account previously being used by its parent organization, one97 Communications Limited (OCL). This will ensure that merchant settlements remain uninterrupted, allowing Paytm to continue serving its merchants seamlessly.
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By collaborating with Axis Bank, Paytm has taken proactive steps to ensure a smooth transition and maintain its operations beyond the RBI-imposed deadline. This move demonstrates Paytm’s commitment to providing uninterrupted services to its merchants and customers.
Post March 15, 2024, while Paytm FASTags remain usable, they cannot be recharged, rendering them essentially useless for toll tax payments unless otherwise specified. Mukesh Chand, Senior Counsel at Economic Laws Practice, clarifies that although customers can utilize their existing FASTag balance, they won’t be able to add more funds to FASTags issued by Paytm Payments Bank Limited (PBBL) after this date.
The Reserve Bank of India (RBI) has explicitly stated that Paytm FASTags cannot be recharged after March 15, 2024. According to an FAQ issued by the RBI, users are advised to obtain a new FASTag from another bank before this date to avoid inconvenience. Additionally, the RBI notes that the credit balance in Paytm FASTags cannot be transferred to another FASTag. Therefore, users must close their old Paytm FASTags and request a refund from the bank.
Chand further emphasizes that since FASTags are currently not interoperable, customers must exhaust the balance in their Paytm FASTags and then obtain a new FASTag from a different bank.
