Team-BHP - RBI asks PayTM Bank to wrap up all operations by March 15

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Originally Posted by sunbaj (Post 5713760)

An off topic question but has anyone travelled on highways post the PayTm mayhem?

I travelled Bangalore-Hassan-Manipal and Manipal-Shimoga-Chitradurga-Bangalore on 1/2 and 2/2 respectively; it was all BAU. Nothing amiss. Tolls got deducted and the SMS notifications came.

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Originally Posted by sunbaj (Post 5713760)

An off topic question but has anyone travelled on highways post the PayTm mayhem ? I am sure many owners/drivers would not be even aware of what has happened to the PayTm Fastag they have been using. How is the situation on the Toll booths.

I have travelled and indeed no change there. As long as you have enough balance to pay, no issues. It is fuss free as it was before.

I have been using PayTM Wallet since inception and FasTag since 3+ years, never had any issue. I hope they sort out the mess with minimum impact and full complience to regulations.

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Originally Posted by PaddleShifter (Post 5713790)

We have three PayTM Fastags that are all linked to the PayTM Wallet in my phone. Considering that the other two cars rarely go out of city, I am planning to cancel their PayTM Fastags in coming days and move to some other FasTag.

The main issue lies with mine. I have highway trips planned in Feb mid and March second week (not for vacation or leisure so cannot cancel). Need to be swift between cancellation and new Tag application.

I am sure some must have cancelled their PayTM Fastags for sure. Can anyone please answer the following:

1. How long did it take for your FasTag to deactivate? So that you could apply for another?

2. What FasTag have you shifted to?

I am thinking about shifting to ICICI FasTag as disputes of over deductions etc are resolved fairly quickly.

There is no need for us to cancel PayTm Fastag prior to ordering a new one. I still have my PayTm Fastag as active and have got ICICI FasTag issued to me and will be delivered on 7th post which I would be cancelling the PayTm Fastag.

I had ordered the ICICI Fastag on 2nd through mobile app and it was shipped on 5th from Mumbai and would be delivered to me on the 7th.

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Originally Posted by Briarean (Post 5712926)

○ Paytm Payments Bank will no longer offer key services such as accepting deposits, top-ups, prepaid instruments, wallets, FASTags, and National Common Mobility Card (NCMC) after February 29.

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Do we have clarity paytm fastags will not work even with a change of bank/UPI?

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Originally Posted by BhayanaV (Post 5713858)

Do we have clarity paytm fastags will not work even with a change of bank/UPI?

I don't think it will work. If my understanding is correct, since Paytm payments bank and wallet itself is closing down, the fastag will stop working once the remaining balance in the wallet is over (as you cannot top up the wallet further)

Here is how it works:
1. Fastags are linked to a vehicle
2. Fastag's money is linked to a Wallet
3. Wallet is linked to a Bank
4. Using UPI, we can add money which goes through the bank, into the fastag Wallet. <This step was rationalized later>

My guess is Paytm did some masti (Intermingling) at steps 3 and 4 which irked RBI.

I have been using Axis Bank fastag, and I can top it up using Google Pay but I could not do so using Paytm app (last I tried a year ago). Also, the Axis bank wallet is exclusively only for toll payments, I cannot use that fastag wallet money anywhere else, nor can I move it to any other account once its 'loaded'. Back in 2019, there was no KYC done for Axis bank fastag too (time of purchase of vehicle), but I do remember submitting some details to them at some point after covid got over (see point 4 above). It looks like Paytms 'intermingling' between their wallets and bank meant such money could be used for doing transactions other than just toll payments, not sure of it as I never used one, I have a hunch it could be done.

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Originally Posted by PaddleShifter (Post 5713790)

I am sure some must have cancelled their PayTM Fastags for sure. Can anyone please answer the following:

1. How long did it take for your FasTag to deactivate? So that you could apply for another?

2. What FasTag have you shifted to?

1. Tag will be deactivated immediately, but closure takes 3-4 days. As per my understanding, you can apply for new fastag after deactivation. I had applied for closure on 31st Jan, and received this info from PayTM customer care on 1st Feb:

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Hi Customer,

Hope you are doing fine!

We would like to inform you that fastag services has been deactivated and tag closure is under process.

No further amount will be deducted for any new transaction from now on, however We will wait for any previous pending transaction to be provided by Toll Plaza for 3 days and will close the TAG by 04/02/2024. Please note that in case of Pending transaction being presented by Toll Plaza within 3 days – the amount will be deducted from your Wallet or FASTag Wallet. Till the time the presented amount is not recovered, the TAG will not be closed.

Your applicable refund will be credited into your source account by 11/02/2024.

You can also purchase a new FASTag for your vehicle now.

Note- Post closure, your FASTag cannot be reactivated.

2. For replacement, I will be going with ICICI. Probably next month, as my toll usage is very limited.

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Originally Posted by saildrive (Post 5712693)

I happened to purchase PayTM Gold - again as a matter of convenience; sort of SIP as and when I could.

Let me know what you guys suggest. Should I sell whatever quantities I have with me? What do you think would happen once this Gold is liquidated? How will I be able to withdraw the money?

Hope to hear from those who would know some details on the above...

Thanks

Same here, I also bought PayTM gold 3 years back as they were official partners of MMTC back then (Probably still are)

While buying, MMTC assured that the gold is actually kept in their own vaults and PayTM is just an intermediary for the transactions. Don't know what's gonna happen now. The MMTC website no longer mentions PayTM and instead have started direct operations (Invite only) to sell digital gold. Please tell what next steps you are gonna take and keep me in the loop. Thanks

For those anxious about other non-PayTM fastags, I would encourage them to use fastags from ICICI Bank or Axis Bank (or any other registered Bank).
I had never used PayTM fastag but have had no issue at all in ordering or recharging or closing fastags from ICICI and Axis Banks.
I currently use ICICI Fastag and it is very easy to recharge and track spends (through a dedicates ICICI App).
Earlier, I had to close Axis Bank fastag after replacing my windshield and the process was smooth (taking about 10 days for the closure and amount to be credited in my Axis Bank Savings account).
Apart from the initial hassle, hesitation and concerns in switching to other Fastags, I don't think users of this forum (or other PayTM fastag user) will find other fastags any less convenient.

As for RBI's directive, I can only share a recent experience wherein I got a PayTM Payments Bank Account statement in December 2023 showing balance of Rs 11 and transaction of Rs 6. This is despite me a) never opening a PayTM Payments Bank Account, b) never submitting any KYC document to PayTM, c) never having PayTM app, d) and never having used PayTM in the last 7 years! If they can open my PayTM payments bank account without my consent and KYC, I wonder what might have happened with many others!

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Originally Posted by shancz (Post 5712959)

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You don't need to purchase insurance but if you entered yo
I hope they eventually come back after sorting everything out but for now I am still looking for a solution which provides a wallet, bank, Fastag and UPI in the same app with fingerprint security for payments instead of entering the PIN in full public view, let alone the ease of the swipe.

I have been using iMobile from ICICI Bank. Fastag, UPI, accounts all bundled into one app. Stopped using PayTM wallet long back and even now I use gateways like GPay very rarely. Only catch is you need have an account with the bank to use it.

Stocktwits highlights current rumour in the market regarding paytm saga. Got this in my inbox today.

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Jio Financial to Acquire Paytm Wallet?

Yesterday, Paytm shares gained 3% after hitting lower circuit for 3 consecutive days. This is after the RBI imposed major restrictions on the company's lending business. This also includes a prohibition on accepting new deposits & doing credit transactions after Feb 29, 2024.

The event also led to media speculations about the sale of the Paytm Wallet business to Reliance-owned Jio Financial Services. On account of this, Jio Financial’s shares gained 15% on Monday’s trading session.

Although Paytm rejected these speculations. A Paytm Payments Bank spokesperson said - “We do not comment on any market speculation. We completely abide by the direction of the regulator, and the team’s effort is to ensure a smooth customer experience with the products offered by PPBL.”

Jio Financial Services also clarified that it has not been in any negotiations in this regard.

PS. Paytm shares hit an all-time low of 395 yesterday. It will be interesting to see where Paytm is headed now.

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Originally Posted by Comrade (Post 5714401)

Stocktwits highlights current rumour in the market regarding paytm saga. Got this in my inbox today.

Jio & Paytm have both stated there are not in discussions
https://www.msn.com/en-in/money/tops...-on-wallet-biz

HDFC on the other hand is "Waiting and watching", but their talks is with One 97 and not with the beleaguered payment bank.
https://timesofindia.indiatimes.com/.../107467440.cms

Meanwhile VK (and other founders) has written to RBI "granting Paytm Payments Bank a clear and practical window to address identified deficiencies" !! Not sure why RBI would be accommodating after giving 2 years of time to rectify.
https://timesofindia.indiatimes.com/.../107467440.cms

Paytm crisis: We give enough time to comply with rules, says RBI Governor

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Deputy Governor Swaminathan J said that the action on Paytm was taken due to "persistent non-compliance". He said that there had been a bilateral engagement between the regulator and the fintech company for months, and RBI had not only pointed out deficiencies but also given enough time to take corrective measures. Das also said that the issue with Paytm was not of regulations but of compliance. The RBI had earlier this month imposed restrictions on Paytm Payments Bank from accepting new deposits from February 29.

Das, on Thursday, said that the restrictions imposed "are always proportionate to the gravity of the situation", adding that the main focus is on the protection of depositors and the economic stability.

Source: https://www.business-standard.com/fi...0800493_1.html

A video explaining the current situation and what users of Paytm wallet need to keep in mind

https://www.youtube.com/watch?v=7JXkKVA5RAA