SUMMARY
These toll plazas managed by Paytm Payments Bank represent approximately 14% of the nation’s daily national highway toll collection, averaging ₹190 crore
The selected nine banks include Axis Bank, HDFC Bank, ICICI Bank, IDBI Bank, IDFC First Bank and Kotak Mahindra Bank
It is pertinent to note that the Reserve Bank of India barred the Paytm payments bank from accepting deposits from customers after February 2
The National Highways Authority of India (NHAI) has initiated the process of migrating its 24/7 toll stations, where fintech major Paytm’s banking unit Paytm Payments Bank is the facilitator of the toll collection, to other banks.
The highways authority has selected nine banks to handle payments at the 24/7 toll stations, as per ET’s report.
These toll plazas managed by Paytm Payments Bank represent around 14% of the country’s daily national highway toll collection, which is INR 190 Cr on average.
The selected nine banks, include Axis Bank, HDFC Bank, ICICI Bank, IDBI Bank, IDFC First Bank and Kotak Mahindra Bank.
These banks will take over the role previously held by the Paytm Payments Bank in managing toll collection on behalf of NHAI.
NHAI’s move is aimed at ensuring uninterrupted toll collection at these gateways after March 15, the date from which the Reserve Bank of India has asked Paytm Payments Bank to stop basic payment services.
This comes a day after the road tolling authority issued a fresh alert urging highway users to buy FASTags from authorised banks and the name of Paytm has been omitted from the list.
Taking to its official X (formerly Twitter) handle, Indian Highway Management Company (IHMCL), the electronic tolling arm of the National Highways Authority of India (NHAI), has put out a list of 32 authorised banks from where commuters can buy FASTags for vehicles.
It is pertinent to note that the Reserve Bank of India barred the Paytm payments bank from accepting deposits from customers after February 29.
Earlier it was reported that IHMCL barred Paytm Payments Bank from issuing fresh FASTags after an audit by the agency found that the entity was not complying with the parameters prescribed in the service-level agreement (SLA).
In a letter, IHMCL called for a response from Paytm Payments Bank, questioning why the company should not face penalties for its non-compliance. Following Paytm’s situation, other entities are now under scrutiny and might also face similar actions.
The RBI on January 31 barred Paytm Payments Bank from taking deposits, credits, or processing top-up transactions in its customer accounts for ‘persistent non-compliances’. The bank has also been barred from processing other banking services like UPI facilities and funds transfers from February 29.
Meanwhile, on Friday (February 16), Paytm said that it has shifted the nodal account of Paytm Payments Bank to Axis Bank.
In a regulatory filing with the bourses, the fintech major said that the new arrangement has been executed by opening an escrow account with the private bank to ensure merchant settlements continue without a hitch.
The move is expected to replace the nodal account that the parent One97 Communications was using with regard to Paytm Payments Bank, the company said in a statement.
The development comes close on the heels of the RBI refusing to extend the deadline for the termination of the nodal accounts of “One97 Communications and Paytm Payments Services maintained by Paytm Payments Bank”.
Earlier in an order on the same day, the central bank granted partial reprieve to Paytm Payments Bank, as it extended the deadline for business restrictions on the fintech major’s banking unit to March 15 from February 29 earlier.
It also allowed the payments bank to undertake other banking services, such as UPI facility and fund transfers, till March 15.
