The National Highway Authority of India (NHAI) has taken a significant step by removing Paytm Payments Bank Ltd (PPBL) from its list of 30 authorized banks for FASTag services, citing regulatory concerns regarding alleged rule violations. In addition to this, the government has also extended the deadline to ban Paytm Payments Bank and people now have time until March 15 instead of February 29. Here are the details.
This move directly impacts millions of Paytm FASTag users, who will now need to obtain new Radio Frequency Identification (RFID) stickers, as Paytm FASTags will not be operational after March 15. With India having over 70 million FASTag users, Paytm Payments Bank's claimed 30 percent market share suggests that more than 15 million users will be impacted by this move. It is better to switch to a different bank for FASTags or you might end up having issues during your time on the toll road after March 15.
The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank services to March 15. This basically means that people who are using Paytm Payments Bank service will be able to conduct various transactions, including deposits, credit services, prepaid services, wallets, FASTags, and National Common Mobility Cards until the new deadline. After this, the services won't be accessible. Hence, people using Paytm Payments Bank are advised to take action and remove their account or deposits if there is any before the new deadline.
The NHAI's updated list of authorized banks for FASTag services includes Airtel Payments Bank, Axis Bank, HDFC Bank, ICICI Bank, State Bank of India, and others, ensuring continued access to this essential toll payment service.
FASTag facilitates seamless toll payments while the vehicle is in motion, functioning across over 750 toll plazas nationwide. The RFID tag affixed on the vehicle's windscreen links directly to the user's account, simplifying toll payments at both national and state highway toll plazas.