Facing problems in closing your Paytm FASTag account? Here’s how to do it

The National Highways Authority of India, on March 13, had advised FasTag users to switch to FASTags from different banks before the deadline. However, some users complained that they were unable to fully close or deactivate their Paytm FASTag accounts.

Here are the steps to close your PPBL FASTag account:

Step 1: Login to your Paytm account

Step 2: Search for “FASTag”

Step 3: Select “Manage FASTag”

Step 4: Select the FASTag account you want to deactivate and click “close FASTag”

Step 5: Your amount will be refunded

The FAQs addressed concerns about the minimum balance of FASTag accounts and the refund of security deposits. It also mentioned that after March 15, no top-ups can be done on FASTag accounts linked with PPBL. However, the existing balance can be still used to pay at toll plazas.

Why was PPBL banned?

On January 31, RBI imposed restrictions on PPBL under section 35A of the Banking Regulation Act, 1949. The RBI, in its press release had said that the ban on PPBL stemmed from persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action. The restrictions were issued after what the regulator said “a comprehensive system audit report and subsequent compliance validation report of the external auditors”. Charges of money laundering were also levelled against the payments service provider.

What about Paytm wallet?

According to FAQs released by the RBI last month, customers using Paytm wallet can continue to use, withdraw or transfer to another wallet or bank account up to the balance available in the wallet and close it, even after the March 15 deadline. However, they are not allowed to deposit money into your account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited. This is as per RBI’s FAQs released on February 16, 2024.

What the Paytm’s FAQs said?

I have a savings or current account with Paytm Payments Bank. Can I continue to withdraw money from this account after March 15, 2024? Can I continue to use my debit card issued by Paytm Payments Bank?  

The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account from accepting new deposits or allowing credit transactions after March 15, 2024. However, you can continue to use, withdraw or transfer your funds from your account up to the available balance in your account. Similarly, you can continue to use your debit card to withdraw or transfer funds up to the available balance in your account.

I have a savings bank or current account with Paytm Payments Bank. Can I deposit or transfer money into this account after March 15, 2024?  

The Reserve Bank of India (RBI) has issued a directive prohibiting Paytm Payments Bank from accepting new deposits or facilitating credit transactions after March 15, 2024. However, interest, cashbacks, sweep-ins from partner banks, or refunds are permitted to be credited, the FAQ said.