India’s road tolling authority has removed Paytm Payments Bank from its roster of 32 approved banks for purchasing FASTags, marking a significant shift for the approximately 20 million users of Paytm FASTags.
FASTags refer to an electronic toll collection system in India, introduced by the National Highways Authority of India (NHAI).
The decision comes in the wake of regulatory constraints imposed on Paytm Payments Bank by the Reserve Bank of India (RBI), leading to Paytm FASTags becoming inoperative after February 29.
This development implies that the vast number of Paytm FASTag users will need to obtain new RFID (Radio Frequency Identification) stickers to ensure uninterrupted access to toll roads.
Despite Paytm’s substantial market share, no banks are currently willing to cater to Paytm FASTag users, leaving them with the sole option of switching to FASTags issued by other approved banks.
While the RBI’s decision to curtail the operations of Paytm Payments Bank remains unaltered, IHMCL underscores the importance of facilitating a seamless transition for Paytm FASTag users to FASTags issued by alternative banks.
Given the presence of over 70 million FASTag users nationwide, ensuring minimal disruption during this transitional phase is of paramount importance.
As per a report from the Times of India, the approved banks for issuing FASTags encompass major financial entities such as Airtel Payments Bank, Axis Bank, HDFC Bank, and the State Bank of India, among others.
Post Your Comments