Monday, April 15, 2024

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    Impact on FASTags, UPI, wallet services and more… | Action Punjab

    PTC Web Desk: The Reserve Bank of India (RBI) has issued directives to impose restrictions on Paytm Payments Bank (PPBL) effective March 15, citing non-compliance with regulations and supervisory issues. Consequently, various services such as deposits, credit transactions, and FASTag recharges will be halted, significantly impacting users’ banking activities.

    Services Affected by the Directive

    As per the RBI directive, Paytm Payments Bank will cease to accept deposits or top-ups in customer accounts, wallets, FASTags, and other instruments. This implies that users will no longer be able to deposit money into their PPBL accounts, including salary credits, direct benefit transfers, or subsidies.

    Disruption in UPI and IMPS Functions

    Additionally, the directive prohibits the use of Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) functions through PPBL accounts. This restriction poses challenges for users accustomed to utilising these widely used payment systems for various financial transactions.

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    Withdrawal and Transfer Operations

    While money depositing services are suspended, customers can still withdraw and transfer funds from their PPBL accounts. Refunds, winnings, and cashbacks from partner banks will continue to be processed, providing some relief amidst the disruptions caused by the directive.

    Impact on Paytm Wallet and FASTag Recharge

    After March 15, users will no longer be able to use top-up and transfer facilities for PPBL wallets. However, existing funds in the wallet can still be utilised for transactions and payments. Furthermore, PPBL-issued FASTags cannot be recharged post-deadline, necessitating users to procure FASTags from other banks for their vehicles.

    NCMC Cards and Merchant Transactions

    The directive also affects National Common Mobility Cards (NCMC) issued by PPBL, as users will be unable to recharge or top-up funds into these cards. Additionally, for merchants, accepting payments using Paytm QR code, Paytm soundbox, or Paytm PoS terminal linked to PPBL accounts will be permissible post-deadline only if the receipt and transfer of funds are associated with a bank account other than PPBL.

    NHAI’s Advisory and Updated List of Authorised Banks for FASTags

    In response to the directive, the National Highways Authority of India (NHAI) issued an advisory stating that PPBL-issued FASTags cannot be recharged after March 15. Instead, users are advised to obtain FASTags issued by other banks to ensure seamless toll transactions. The NHAI has updated its list of authorised banks and non-banking financial companies (NBFCs) for issuing FASTags, encompassing 39 banks and NBFCs, including prominent entities like HDFC Bank, ICICI Bank, State Bank of India, and Yes Bank.

    BSE’s Communication to Investors

    The Bombay Stock Exchange (BSE) has advised investors who have registered bank accounts solely with PPBL to register accounts opened with other banks with their trading members. The BSE said these restrictions might impact securities market transactions for investors solely reliant on PPBL accounts with their trading members.


    Author: actionpunjab

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