Paytm Payments Bank Loses NHAI Authorisation For Issuing FASTags
Earlier, IHMCL in a letter dated Jan. 19, 2024 had barred Paytm Payments Bank from issuing fresh FASTags.
Indian Highways Management Company Ltd, toll collecting arm of state-owned NHAI, has advised highway users to buy FASTags from 32 authorised banks sans Paytm Payments Bank for hassle-free travel.
In a post on X, IHMCL said for hassle-free travel, buy your FASTag from 32 authorised banks.
The 32 authorised banks include Airtel Payments Bank, Allahabad Bank, Bank of Baroda, HDFC Bank, ICICI Bank, IDBI Bank, Punjab National Bank, State Bank of India, and Yes Bank, among others.
A senior NHAI official told PTI that India has over 8 crore FASTag users and Paytm Payments Bank has around 30% market share.
Earlier, IHMCL in a letter dated Jan. 19, 2024 had barred Paytm Payments Bank from issuing fresh FASTags.
On Jan. 31, the Reserve Bank directed PPBL to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29.
However, any interest, cashbacks, or refunds may be credited back to customers anytime.
"No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after Feb. 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime," the RBI said.
Further, withdrawal or utilisation of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards are to be permitted without any restrictions, up to their available balance.
"No other banking services, other than those ...like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after Feb. 29, 2024," it had added.
The direction followed persistent non-compliances and continued material supervisory concerns, the central bank had said in a statement.
IHMCL has said it is encouraging FASTag users to complete the 'Know Your Customer' process of their latest FASTag as per RBI guidelines.
The banks authorised for issuing FASTags also include Union Bank of India, Thrissur District Cooperative Bank, South Indian Bank, Saraswat Bank, Nagpur Nagrik Sahkari Bank, Kotak Mahindra Bank, Karur Vyasya Bank, J&K Bank, IndusInd Bank, Indian Bank, IDFC First Bank, FINO Bank, Equitable Small Finance Bank, Cosmos Bank, City Union Bank Ltd, Central Bank of India, Canara Bank, Bank of Maharashtra, AU Small Finance Bank, and Axis Bank.
FASTag is an electronic toll collection system in India operated by the NHAI. It employs Radio Frequency Identification technology for allowing toll payments directly from the linked bank accounts.
