Paytm Payments Bank's fastag exit boosts rival prospects

Crisis-ridden Paytm Payments Bank’s (PPBL’s) exit from the Fastag business may prove to be a boon for rivals. Airtel Payments Bank, for instance, is expecting to add 1 million new customers in the next four months, according to a top company official who spoke on condition of anonymity.

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“We have an active Fastag customer base of 1 and 1.5 million as of February 15, 2024. We are now expecting to add over 1 million customers in the next 3-4 months,” said the official.

According to data provided by PPBL on their website, the bank has issued 8 million Fastags.

“We have over 100 million customers with KYC, and add 0.4 million users every month. We are also the largest issuer of Fastags, with over 8 million units issued,” says the PPBL website.

Per a recent directive from the Reserve Bank of India (RBI) on February 16, Paytm Fastag customers are allowed to use their existing balances, and no end date has been specified for the same. However, they are restricted from adding additional funds to these instruments beginning March 16.