The National Highway Authority of India (NHAI) has taken the decision to remove Paytm Payments Bank Ltd (PPBL) from its list of authorized banks for its FASTag service. This move comes as Paytm Payments Bank faces regulatory action over alleged violations of rules.
The NHAI has now replaced Paytm Payments Bank with other banks in its list of authorized banks for FASTag services. The new list includes esteemed banks such as Airtel Payments Bank, Allahabad Bank, AU Small Finance Bank, Axis Bank, Bank of Baroda, Bank of Maharastra, Canara Bank, Central Bank of India, and many more.
The decision to remove Paytm Payments Bank from the list of authorized banks for FASTag services was precipitated by the recent regulatory actions against the company. The Reserve Bank of India (RBI) imposed major business restrictions on Paytm Payments Bank on January 31, including the prohibition of accepting fresh deposits and conducting credit transactions after February 29. The RBI had also barred Paytm Payments Bank from onboarding new customers in March 2022.
As a result of the regulatory actions, the nodal accounts of One97 Communications and Paytm Payments Services, associated with Paytm Payments Bank, are to be terminated by February 29, 2024, as stated by the RBI.
FASTag is a device that utilizes Radio Frequency Identification (RFID) technology to enable toll payments while a vehicle is in motion. The FASTag chip is affixed to the vehicle’s windscreen and allows customers to make toll payments directly from their linked accounts. The FASTag system is operational at more than 750 toll plazas, including national and state highway toll plazas across India.
The management of NHAI Fastag is entrusted to the Indian Highways Management Company Ltd. The new list of authorized banks for FASTag service includes a diverse range of payment banks, scheduled commercial banks, and small finance banks.
The removal of Paytm Payments Bank from the list underscores the NHAI’s commitment to ensuring compliance with regulations and maintaining a trustworthy and efficient FASTag system. With the inclusion of the newly authorized banks, the NHAI aims to continue providing a seamless and hassle-free toll payment experience for drivers across the country.
FASTag Service: Key Points
- Cashless Toll Payments: FASTag service allows electronic toll collection, eliminating the need for cash or stopping at toll booths.
- RFID Technology: A sticker with an RFID chip is affixed to your vehicle, automatically deducting toll charges as you pass.
- Faster Commutes: No stopping for cash transactions, leading to smoother traffic flow and quicker travel times.
- Multiple Recharge Options: Recharge online, through apps, at designated points, or through FASTag-enabled wallets.
- Discounts & Incentives: Many toll plazas offer discounts for FASTag users, promoting its adoption.
- Multi-Vehicle Use: Single FASTag for multiple vehicles registered under the same owner.
- Multiple Toll Plazas Covered: Works across National Highways and many state highways.
- Multiple Issuers: Choose from various banks and issuers for your FASTag.
- Mobile App Management: Track toll charges, recharge FASTag, and manage account details through dedicated apps.
- Government Initiative: Supported by the Indian government to promote digital payments and improve traffic flow.
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Last Updated on 7 months
