Paytm Payments Bank removed from NHAI's list of authorized FASTag issuers

16 Feb 2024 , 01:09 AM

In light of the company’s potential regulatory action for purported rule violations, the National Highway Authority of India (NHAI) has withdrawn Paytm Payments Bank Ltd (PPBL) from its list of 30 authorised banks for the FASTag service.

Airtel Payments Bank, Allahabad Bank, AU Small Finance Bank, Axis Bank, Bank of Baroda, Bank of Maharastra, Canara Bank, Central Bank of India, City Union Bank, Cosmos Bank, Equitias Small Finance Bank, and Federal Bank are among the banks that the NHAI has designated for FASTag services.

Additionally, it includes Banks such as Fino Payments, HDFC, ICICI, IDBI, IDFC First, Indian, J&K, Karnataka, Karur Vysya, Kotak Mahindra, Nagpur Nagarik Sahakari, Punjab National, Sarswat, State Bank of India, Thrissur District Cooperative, UCO, Union bank of India, and Yes Bank.

Using Radio Frequency Identification (RFID) technology, FASTag is a gadget that allows toll payments to be made directly from a moving vehicle.

The vehicle’s windscreen is equipped with the FASTag (RFID Tag) chip, which allows users to pay for tolls directly from the account that is connected to the chip. More than 750 toll plazas nationwide, including all national highway and more than 100 state highway toll plazas, have FASTag active.

The Indian Highways Management Company Ltd. is in charge of overseeing the NHAI Fastag.

The Reserve Bank of India (RBI) placed significant business restrictions on Paytm Payments Bank on January 31, including the inability to take new deposits and conduct credit transactions beyond February 29. This led to the emergence of the Paytm controversy. In March 2022, the central bank prohibited Paytm Payments Bank from accepting new clients.

On January 31, the RBI notified the lender to cease accepting new clients immediately. The RBI stated in a press release that One97 Communications and Paytm Payments Services’ nodal accounts must be closed as soon as possible and, in any event, no later than February 29, 2024.

For feedback and suggestions, write to us at [e-mail]