Paytm Payments Bank Removed from FASTag Issuers List, NHAI Advises Alternatives

The Indian Highways Management Company Ltd (IHMCL), the toll collecting arm of NHAI, has excluded Paytm Payments Bank from the list of authorized banks for issuing FASTags, urging highway users to opt for alternatives for seamless travel.

IHMCL’s announcement advises travelers to obtain FASTags from the 32 remaining authorized banks, including Airtel Payments Bank, HDFC Bank, ICICI Bank, State Bank of India, and others, ensuring a smooth toll payment experience.

This decision comes after IHMCL’s earlier directive dated January 19, 2024, which prohibited Paytm Payments Bank from issuing new FASTags. Subsequently, on January 31, the Reserve Bank of India directed Paytm Payments Bank to cease accepting deposits or top-ups in customer accounts, wallets, and FASTags after February 29.

While existing customers may receive interest, cashbacks, or refunds, no further transactions will be permitted after the specified date. However, customers retain full access to their account balances for withdrawals or utilization without restrictions.

The RBI’s action followed persistent non-compliance and significant supervisory concerns, underscoring the regulatory imperative for adherence to guidelines.

IHMCL emphasizes the importance of completing the ‘Know Your Customer’ (KYC) process for existing FASTag users in accordance with RBI regulations.

FASTag, operated by NHAI, facilitates electronic toll collection through Radio Frequency Identification (RFID) technology, enabling direct toll payments from linked bank accounts. With the exclusion of Paytm Payments Bank, users are encouraged to transition smoothly to other authorized banks for uninterrupted travel convenience.