A day after Reserve Bank of India (RBI) ordered Paytm Payments Bank (PPBL) to stop its popular mobile wallet business along with other activities, the company responded with a clarification about FASTag. In its order, the RBI had asked Paytm to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. But in a statement, the company clarified that the RBI order does not impact user deposits in their savings accounts, wallets, FASTags, and NCMC accounts, and they can continue to use the existing balances.
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Paytm also posted a fact-check on X (formerly Twitter) where it denied that users' FASTag will stop working.
"You can continue to use the existing balance on your Paytm FASTag. We started our journey of working with other banks over the last two years, which we will now accelerate. We are working on effective solutions to ensure a seamless customer experience and will keep you posted," the company said on X.
The RBI order had said that any interest, cashbacks, or refunds may be credited back to Paytm customers anytime.
"No other banking services, other than those...like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc), BBPOU and UPI facility should be provided by the bank after February 29, 2024," the central bank had said.
Responding to the RBI move, Paytm said in a statement late on Wedneday that its parent company One97 Communication Limited (OCL) works with various banks.
"With regard to the direction on termination of the nodal account of OCL and Paytm Payments Services Limited (PPSL) by February 29, 2024, OCL and PPSL will move the nodal to other banks during this period. OCL will pursue partnerships with various other banks, to offer various payment products to its customers," the Paytm statement said.
According to an update posted on Paytm website, PPBL had issued 1.24 crore FASTags.
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