Paytm rolls out direct FASTag recharge amid regulatory challenges
What's the story
Paytm has unveiled a new feature that allows users to recharge their FASTags directly via its mobile app. This move comes in the wake of regulatory challenges faced by Paytm Payments Bank Ltd (PPBL). The Reserve Bank of India (RBI) had previously instructed PPBL to stop onboarding new customers and accepting fresh deposits after March 15, 2024.
Process
Step-by-step guide: Recharging FASTag via Paytm app
Recharging a FASTag through the Paytm app is a simple process. Users need to select the 'FASTag Recharge' option located in the 'Bill Payments' section. They are then required to choose their FASTag issuing bank from a dropdown list. After inputting their vehicle number associated with the FASTag and verifying the details, users can enter their preferred recharge amount and complete the transaction by clicking on 'Proceed to Pay.'
HDFC's backing
HDFC Bank-issued FASTags now available on Paytm app
Paytm has expanded its offerings, enabling users to purchase new HDFC Bank-issued FASTags directly from its app. To do this, users need to search for 'Buy HDFC FASTag,' fill in their personal and vehicle information, make the payment, and then wait for the delivery of the HDFC FASTag sticker at their doorstep. This feature remains accessible despite RBI's restrictions affecting PPBL's capacity to issue new tags.
Mandatory
Understanding FASTags: A compulsory requirement for Indian vehicles
FASTags, employing radio-frequency identification technology (RFID), are compulsory for all four-wheeler vehicles in India. These reusable tags are attached to a vehicle's windshield, and facilitate instant and automatic deduction of toll charges as a vehicle passes through a toll plaza. This system streamlines toll payments, significantly reducing wait times at toll booths.