[Motorhead007]

Nice very relevant thread.
However I don't think there is a need to panic yet. In my opinion Paytm is too big to fail at this time. The govt/RBI will find some ways to ensure it is provided some slack. Also Paytm is already working out a solution with other banks.
So overall impact :
- App not impacted
- Paytm money not impacted
- Fastag working out a solution
- Paytm bank - people can withdraw
- UPI not impacted

Given the sheer number of people impacted, Govt will not allow it to fail this being an election year.

[harry10]

I primarily use Paytm for Fastag and upi.
1 Paytm fast tag is showing suspended and can't upload RC images as it's showing Vrn already exists. So, have decided to ditch Paytm fastag.

Which fastag to opt for?
As I understand Icici is a good one. We can buy from imobile app and recharge from that too. Anyone using icici fastag please recommend if it's a good one?

This is a hassle but as much I read, Paytm brought this on themselves.

[binand]

Originally Posted by harry10

Which fastag to opt for?
.

There is a thread exactly for this:

https://www.team-bhp.com/forum/stree...-provider.html (Who is your preferred FASTag provider?)

[Ays7]

To be honest, I am kind of surprised to see the type of brickbats the RBI has been getting for this move. Especially when it is clear that it was PayTM who failed to comply with the regulatory requirements since March 22. Regulatory compliances have to be non-negotiable, especially for companies that deal with public money and accept deposits from public.

PayTM took the grievances raised by RBI in their multiple audits very lightly and did not take any steps to resolve it and had this coming. Had RBI been caught napping on this, and not taken any action, they would have been taken to shreds. The conspiracy theories are mind boggling - assumptions that entire fintech is being killed to make way for Jio is just nonsensical in my humble opinion.

To my understanding here is the crux of the issue - The parent company of PayTM and PayTM Bank are two different juristic entities and they should operate at arms length distance and this issue has been flagged many times by RBI. But PayTM failed to resolve this, both companies had common directors and common Key Management Personnel that would have made independent functioning of PayTM bank impossible.

Second issue was PayTM app - it was hard for a common user to ascertain whether all offerings on the App's page belonged to Paytm or PayTM bank. One is a vendor and other is a bank, so different rules apply to both. PayTM failed to make the App more transparent.

To give you an example, a fair analogy would be Byju's selling packages to parents on EMI's without disclosing that financing was done by a third party and parents had effectively taken a loan from a third party financial institution.

I personally have used PayTM since ages and find it seamless. But the concerns of the RBI as a regulator are real and PayTM erred in not taking any credible steps to rectify the adverse findings in the earlier audits. To me, they did have this coming. At the heart of it, this is just a company paying the price for not playing by the rules, and that is what I would read into this.

Just my 2 cents.

[poloman]

Originally Posted by Ays7

To be honest, I am kind of surprised to see the type of brickbats the RBI has been getting for this move. Especially when it is clear that it was PayTM who failed to comply with the regulatory requirements since March 22. .

As we speak there are thousands if not lakhs of fly by night banks, chit funds and financial institutions cheating general public in this country. We have seen multiple bank collapses with investor funds getting stuck and this is going to happen in future also. Thousands of betting and gaming apps are scamming people. RBI is not doing anything about that.

Why I think this is an over reaction from RBI is that, fintech needs new regulations and liberal outlook from the compliance authorities. The line between wallet, bank, platform, lender etc are very thin. Most customers have seamless experience in Paytm. No one has been cheated or lost money or raised complaint about the platform's operations. RBI should not go in to kneejerk reaction mode. They should laid out guidelines and enforce it with iron fist. Why go in to a ban of some thing like fast tag?

I am yet to see a clear explanation on " what is wrong if the app and bank are not kept at arm's length?" Every bank is having a payment and money transfer app nowadays.

[Aviator_guy]

Originally Posted by harry10

I primarily use Paytm for Fastag and upi.
1 Paytm fast tag is showing suspended and can't upload RC images as it's showing Vrn already exists. So, have decided to ditch Paytm fastag.

Which fastag to opt for?
As I understand Icici is a good one. We can buy from imobile app and recharge from that too. Anyone using icici fastag please recommend if it's a good one?

This is a hassle but as much I read, Paytm brought this on themselves.

Yes, go for ICICI.

In case you also hold savings account with ICICI then you can order tag via net banking without need for separate KYC. However, name on account and car RC should be same.

[Ays7]

Originally Posted by poloman

As we speak there are thousands if not lakhs of fly by night banks, chit funds and financial institutions cheating general public in this country. We have seen multiple bank collapses with investor funds getting stuck and this is going to happen in future also. Thousands of betting and gaming apps are scamming people. RBI is not doing anything about that.

Why I think this is an over reaction from RBI is that, fintech needs new regulations and liberal outlook from the compliance authorities. The line between wallet, bank, platform, lender etc are very thin. Most customers have seamless experience in Paytm. No one has been cheated or lost money or raised complaint about the platform's operations. RBI should not go in to kneejerk reaction mode. They should laid out guidelines and enforce it with iron fist. Why go in to a ban of some thing like fast tag?

I am yet to see a clear explanation on " what is wrong if the app and bank are not kept at arm's length?" Every bank is having a payment and money transfer app nowadays.

You have to understand that PayTM is not a bank in true sense. And we can indulge in a lot of "Whataboutery" and why RBI is not taking any action against others - this is exactly what I am talking about. If they do something, they get brickbats, if they do nothing, they still get the brickbats.

One must remember, Fast Tag as a product is not banned - only Fast Tags operated by PayTM has been banned, and that too for not following the rules despite multiple warnings. Public does have multiple options to chose from vis-a-vis Fast Tags.

Also PayTM Bank and PayTM Apps are very different. Products on the app, many of them have nothing to do with the bank. Hence this issue.

[poloman]

Originally Posted by Ays7

Also PayTM Bank and PayTM Apps are very different. Products on the app, many of them have nothing to do with the bank. Hence this issue.

So what exactly is the issue here which can impact the end customer?
PayZapp from HDFC bank also have similar features. All banks have such apps.

[ValarMorghulis]

Originally Posted by NomadSK

Well well you are underestimating the Power of Reliance group...
When Oil&Gas was their bread and butter, oil ministry was in their pockets. They single handedly disrupted Essar group and almost made Ruia’s bankrupt !! Old stories

Originally Posted by GutsyGibbon

One should try to buy the book "The Polyester Prince"

Interesting. My friend arguing against this move has also read the same book and keeps pushing me to do the same.
That said, you guys are overestimating Reliance here. JioPay is non existing in the market and any space created by PayTm will be swiftly gobbled up by two largest providers: PhonePe and GPay, if they do not follow directives. But PayTm says they are becoming compliant.
Why so cynic

Originally Posted by poloman

So what exactly is the issue here which can impact the end customer?
PayZapp from HDFC bank also have similar features. All banks have such apps.

PayTm had a couple of years to comply by RBI directives. Why did it not do so and why is it so difficult to follow the rules in this country?
Remember even HDFC was barred from getting new credit card customers. They complied and RBI allowed them as well

[poloman]

I I were RBI, I would be more concerned about the duopoly of Phonepay and gpay in Indian UPI segment. There was some daily limit imposed on UPI app vendors I believe, but that does not seem to have any impact.

The UPI lite in most apps today is an altered version of Paytm wallet. So why should RBI come harsh on only one vendor all of a sudden.

Something is behind this sudden RBI move.

[Comrade]

I ordered 6 ICICI fastags yesterday and they were delivered today. I wanted to create single wallet for all 6 tags but didn’t see an option unless I call them and place the order. So just ordered 6 tags on the mobile app, and they created 6 individual wallets. My OCD doesn't agree with 6 wallets but from functionality perspective, it’s ok honestly! I enabled auto-reload (as easily as payTM) on all of them using the mobile app.

[Rigid Rotor]

Hidden in the headlines re RBI’s closure of Paytm’s several services, there was a news item that came out a few days ago – regarding Fastag:

https://timesofindia.indiatimes.com/...6.cms?from=mdr

I can vouch for Paytm’s sloppy and non-existent methods of either KYC or even filling in the basic vehicle details before issuing a Fastag.

Details:

• I had purchased a new vehicle in Jun 2021. The dealer wanted to affix Paytm’s Fastag, since he had an ongoing arrangement for the same.
• The Paytm Fastag even after activation did not have details of the vehicle’s RC or licence plate – it had only the vehicle chassis number. I observed this on the toll booth display screen near the barrier and also on the payment receipt messages on my phone. It took me several attempts to enter the details as these had to be approved by Paytm support group, who were very lax in responding.
• In contrast, my earlier vehicle had an ICICI Fastag and the bank’s KYC mechanism was robust – it did not allow issue of the Fastag without filling in required details. Its very obvious Paytm’s implementation was shoddy and permitted their staff to bypass even basic information on the vehicle.
• There is also the end-Feb deadline for KYC renewal for all Fastags. Given Paytm’s other troubles, I very much doubt whether owners of those Paytm Fastags with non-existent KYC will be able to recover the situation.
• I, for one, have already applied for an Axis Bank Fastag, which has been approved and hopefully will be delivered shortly.
• To all the nay sayers and those smelling a conspiracy, I can confidently say - Paytm has definitely been lax and blase' in implementing the specified measures.

[rajivr1612]

Originally Posted by harry10

I primarily use Paytm for Fastag and upi.
1 Paytm fast tag is showing suspended and can't upload RC images as it's showing Vrn already exists. So, have decided to ditch Paytm fastag.

Which fastag to opt for?
As I understand Icici is a good one. We can buy from imobile app and recharge from that too. Anyone using icici fastag please recommend if it's a good one?

This is a hassle but as much I read, Paytm brought this on themselves.

Using ICICI FasTag since the start of this system. Very easy to recharge and user friendly. Haven't had any false deductions yet, so can't comment on complaint resolution.

[DustyWanderer]

After hearing the NEWS, I made a quick switch from PayTM to Park+ FASTag, which I received while ordering HSRP for KA number plate from SIAM website. As PayTM FASTag was very seamless, I never really had an intention to replace it but I am glad that I bought the Park+ FASTag as a backup.

The whole process to deactivate a FASTag was very simple and is well documented.
1. Open PayTM App on your mobile
2. Search for FASTag
3. Select manage FASTag under Paytm Payment Bank
4. Select Help & Support option at the end of the page
5. Select "Need help with non order related queries" which initiates a Bot chat window
6. Select "Queries related to updating FASTag profile"
7. Select "I want to close my FASTag" and after which we need to continue with next set of vehicle related questions.
8. Additionally you could also transfer the balance amount from PayTM wallet to your bank account by searching for "Wallet" and then choose the Wallet icon under PayTM Payments Bank. Select "Transfer to Bank" and then enter the amount after which it will ask for your bank details if not already present.

Also, please note that removing any sticker will require proper adhesive remover or else it will make oily marks over the windshield. Hence I took my car to a nearby Car Wash where they had 3M Adhesive Remover and using a blade, they removed the FASTag from the windshield of my car all for Rs.50.

[Aviator_guy]

Originally Posted by Rigid Rotor

I can vouch for Paytm’s sloppy and non-existent methods of either KYC or even filling in the basic vehicle details before issuing a Fastag.

Details: [list][*]I had purchased a new vehicle in Jun 2021. The dealer wanted to affix Paytm’s Fastag, since he had an ongoing arrangement for the same.[*]The Paytm Fastag even after activation did not have details of the vehicle’s RC or licence plate – it had only the vehicle chassis number. I observed this on the toll booth display screen near the barrier and also on the payment receipt messages on my phone. It took me several attempts to enter the details as these had to be approved by Paytm support group, who were very lax in responding.[*]In contrast, my earlier vehicle had an ICICI Fastag and the bank’s KYC mechanism was robust – it did not allow issue of the Fastag without filling in required details.

Actually it's not the way it looks though I can understand the frustration. All new cars need a Fastag before delivery as per govt guidelines. Now most often than not, car registration number is yet to be generated when dealer applies for a fastag on customer behalf. So they have tie up with banks who can issue tag using chassis number. This is how almost all Fastags are issued for new cars and nothing illegal about it. However, customer is expected to furnish RC to the issuing bank as soon as it is received from RTO. After that the tag gets updated with car number and KYC is marked complete. If this step is not done, the tag would keep showing chassis number. This is what happened to your Paytm tag. It was not professional on Paytm part to ignore your requests for tag update though.

Many customers may miss to update the RC in the tag (knowingly or unknowingly) which may eventually lead to KYC pending or blacklisting at some point of time.

This facility of tag issuance based in chassis number is not available for general public. Hence when someone (other than dealer) wants to buy a tag, they need to submit RC copy and KYC documents during purchase. This is what you might have experienced with ICICI and hence your tag had car number and KYC ok'd.