NHAI omits Paytm from list of authorised banks for FASTag service

FASTag_pic

The National Highway Authority of India (NHAI) has removed Paytm Payments Bank Ltd (PPBL) from its list of 30 authorised banks for FASTag service as the company faces regulatory action over alleged violation of rules.

The banks the NHAI has listed for FASTag services include Airtel Payments Bank, Allahabad Bank, AU Small Finance Bank, Axis Bank, Bank of Baroda, Bank of Maharastra, Canara Bank, Central Bank of India, City Union Bank, Cosmos Bank, Equitias Small Finance Bank and Federal Bank.

It also features Fino Payments Bank, HDFC Bank, ICICI Bank, IDBI bank, Idfc first Bank, Indian bank, Induslnd bank, J&K Bank, Karnataka bank, Karur Vysya bank, Kotak Mahindra Bank, Nagpur Nagarik Sahakari bank, Punjab National Bank, Sarswat bank, State Bank of India, Thrissur District Cooperative bank, UCO Bank, Union bank of India, and Yes Bank.

FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly while the vehicle is in motion.
The FASTag (RFID Tag) chip is affixed on the windscreen of the vehicle and enables a customer to make toll payments directly from the account which is linked to FASTag. FASTag is operational at over 750 toll plazas, including all national highway toll plazas and over 100 state highway toll plazas across the country.

The NHAI Fastag is managed by the Indian Highways Management Company Ltd.

The dispute over Paytm emerged after the Reserve Bank of India (RBI) on January 31 imposed major business restrictions on Paytm Payments Bank, including accepting fresh deposits and doing credit transactions after February 29. The central bank had in March 2022 barred Paytm Payments Bank from onboarding new customers.

RBI informed the lender on January 31 to stop onboarding new customers with immediate effect. In a press release, the RBI said that the nodal accounts of One97 Communications and Paytm Payments Services are to be terminated at the earliest, in any case not later than February 29, 2024.