The National Highways Authority of India (NHAI) has issued a notification urging Paytm FASTag users to acquire a new FASTag from another bank before March 15. This advisory aims to ensure a seamless travel experience for commuters and prevent any inconvenience at toll plazas.
According to NHAI, switching to another bank's FASTag will enable users to avoid penalties or double fee charges while traversing national highways. The advisory emphasizes the importance of timely action to mitigate any potential disruptions in travel plans.
This directive comes in response to guidelines issued by the Reserve Bank of India (RBI) regarding restrictions on Paytm Payments Bank. As per the RBI directives, Paytm FASTag users will no longer be able to recharge or top-up their balance after March 15, 2024. However, existing balances can still be utilized for toll payments beyond the stipulated date.
The Ministry of Road Transport & Highways echoed NHAI's advisory, affirming the implications of the RBI guidelines on Paytm FASTag users. While users may continue to utilize their existing balances post-March 15, the inability to recharge or top-up necessitates a transition to FASTags issued by authorized banks.
National Highways Authority of India (NHAI) has updated its list of banks and financial entities authorized to issue FASTags. The revised list comprises 39 entities, including prominent names such as Airtel Payments Bank, Axis Bank Ltd, HDFC Bank, ICICI Bank, State Bank of India, and others. This update aims to facilitate informed decision-making for FASTag users seeking alternative options.
The NHAI has updated its directory of banks and financial institutions authorized to issue FASTags. This list, containing 39 entities, excludes Paytm Payments Bank due to the aforementioned RBI restrictions. Some authorized issuers include:
Airtel Payments Bank
Axis Bank
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
Yes Bank
This update comes after NHAI's previous advisory in February 2024, urging highway users to acquire FASTags from authorized sources, where Paytm was already absent from the list.
NHAI's recent advisory follows a series of alerts issued to highway users, urging them to procure FASTags from authorized banks. Notably, Paytm's omission from the list of authorized banks underscores the evolving regulatory landscape concerning payment banks and FASTag services.
Paytm Payments Bank received approval from the RBI to operate as a Bharat Bill Payment Operating Unit (BBPOU) a year ago. This designation enabled the bank to offer bill payment services for utilities, loans, FASTag recharge, credit card bills, and more. However, regulatory interventions, including a ban on new customer onboarding, have impacted its operations.
In February 2023, Paytm Payments Bank received approval from the RBI to function as a Bharat Bill Payment Operating Unit (BBPOU). This authorization allows facilitating bill payments for various utilities and services, including FASTag recharge.
However, in March 2023, the RBI restricted Paytm Payments Bank from onboarding new customers due to "certain material supervisory concerns." This restriction ultimately limited the bank's ability to offer FASTag recharge services.
Conclusion:
The NHAI's advisory to Paytm FASTag users underscores the importance of adhering to regulatory guidelines and transitioning to alternative FASTag providers before March 15. This proactive measure aims to minimize disruptions in toll payments and ensure a seamless travel experience on national highways.