SUMMARY
Switching to another bank FASTag would help users avoid penalties or double fee charges while commuting on national highways, NHAI said
In line with the guidelines issued by the Reserve Bank of India regarding restrictions on Paytm Payments Bank, the Paytm FASTags users will not be able to recharge or top-up the balance post March 15, 2024
Last month, the road tolling authority issued a fresh alert urging highway users to buy FASTags from authorised banks
The National Highways Authority of India (NHAI) has asked Paytm FASTag users to procure a new FASTag from another bank before March 15 to ensure a smooth travel experience and avoid inconvenience at toll plazas.
Switching to another bank FASTag would help users avoid penalties or double fee charges while commuting on national highways, NHAI said in its advisory.
This comes on the back of guidelines issued by the Reserve Bank of India regarding restrictions on Paytm Payments Bank.
Paytm FASTag users cannot recharge or top-up the balance after March 15, 2024, although their existing balance to pay tolls beyond the stipulated date can be used.
“In line with the guidelines issued by the Reserve Bank of India regarding restrictions on Paytm Payments Bank, the Paytm FASTags users will not be able to recharge or top-up the balance post 15th March 2024. However, they can use their existing balance to pay toll beyond the stipulated date,” said the Ministry of Road Transport & Highways.
NHAI also updated its list of banks and financial companies that are authorised to issue FASTags.
The updated list issued by the NHAI includes 39 entities including Airtel Payments Bank, Axis Bank Ltd, Bandhan Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, and Yes Bank, among others.
Last month, the road tolling authority issued a fresh alert urging highway users to buy FASTags from authorised banks, while the name of Paytm had been omitted from the list.
A year ago, Paytm Payments Bank received the final nod from the Reserve Bank of India (RBI) to operate as a Bharat Bill Payment Operating Unit (BBPOU).
A BBPOU is allowed to facilitate bill payment services for various utilities like electricity, phone, gas, and water, as well as for loans, FASTag recharge, credit card bills, education fees, and municipal taxes.
However, in March last year, the RBI banned the payments bank from entertaining any new customers over ‘certain material supervisory concerns’.
