The National Highway Authority of India (NHAI) has taken a crucial step by removing Paytm Payments Bank Ltd (PPBL) from its list of 30 certified banks for FASTag services, citing regulatory concerns about potential rule violations. In addition, the government has extended the deadline to ban Paytm Payments Bank, giving citizens till March 15 instead of February 29. Here are the specifics.
This change immediately affects millions of Paytm FASTag customers, who will now need to get new Radio Frequency Identification (RFID) stickers because Paytm FASTags will no longer work after March 15. Given India’s approximately 70 million FASTag users, Paytm Payments Bank’s estimated 30% market dominance means that this decision will affect more than 15 million customers. It is preferable to use a separate bank for FASTags, otherwise you may have problems while traveling on the toll road after March 15.
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The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank services to March 15. This implies that users who use the Paytm Payments Bank service will be able to undertake a variety of transactions, including deposits, credit services, prepaid services, wallets, FASTags, and National Common Mobility Cards, until the new deadline. Following this, the services will be inaccessible. As a result, Paytm Payments Bank users are encouraged to take action and close their accounts or withdraw any deposits they may have before the new deadline.
The NHAI has revised its list of recognized banks for FASTag services, which now includes Airtel Payments Bank, Axis Bank, HDFC Bank, ICICI Bank, State Bank of India, and others, assuring continuous availability to this critical toll payment service.
What is a FASTag?
FASTag allows for smooth toll payments while the vehicle is in motion, with over 750 toll plazas countrywide. The RFID chip mounted on the vehicle’s windscreen connects directly to the user’s account, making toll payments easier at both national and state highway toll plazas.
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