Bharat’s road-tolling authority has eliminated Paytm Payments Bank from its list of 32 authorized banks for purchasing FASTags.
The changes took place for over 20 million Paytm FASTag users. Notably, FASTags was introduced by the National Highways Authority of India (NHAI). FASTags refers to an electronic toll collection system in Bharat.
The Paytm FASTags will become non-operative after February 29, 2024. Reserve Bank of India (RBI) imposed regulatory restrictions on Paytm Payments Bank.
Millions of Paytm FASTag users will have to receive new RFID (Radio Frequency Identification) stickers to access toll roads.
No banks are presently ready to accommodate Paytm FASTag users and give them the option to switch to FASTags issued by other authorized banks. The RBI’s decision to restrict Paytm Payments Bank’s operations remains unchanged.
Vijay Shekhar Sharma, Managing Director of Paytm was in discussions with the RBI regarding the regulatory concerns. This development had signalled that a solution might be there but the reality set in when the NHAI’S tolling vertical, IHMCL (Indian Highways Management Company) took it to X, mentioning the names of 30 exclusive banks authorized to sell FASTags.
NHAI has enlisted various banks for FASTag services, such as HDFC Bank, ICICI Bank, IDBI Bank, IDFC Bank, IndusInd Bank, Kotak Mahindra Bank, Airtel Payments Bank, Allahabad Bank, SBI, UCO Bank, AU Small Finance Bank, Axis Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank, among others.
Comments