The National Highway Authority of India (NHAI) has recently dropped Paytm Payments Bank Ltd (PPBL) from its roster of 30 authorised banks for the FASTag service. This move follows regulatory actions against PPBL due to alleged rule violations.
What to know? FASTag, employing Radio Frequency Identification (RFID) technology, streamlines toll payments. Vehicles equipped with a FASTag chip affixed to their windscreen can automatically pay tolls from linked accounts. This system is operational at over 750 toll plazas nationwide, including both national and state highways.
The list of banks approved by NHAI for FASTag services is extensive, featuring well-known names like Airtel Payments Bank, Axis Bank, HDFC Bank, ICICI Bank, and the State Bank of India, among others. These banks facilitate seamless toll payments for countless commuters across India.
See also: What To Do With Your Paytm FASTag Account After RBI’s Bombshell Directive
What Happened? The controversy surrounding Paytm Payments Bank arose after the Reserve Bank of India (RBI) imposed significant operational restrictions on the bank. In January, the RBI directed PPBL to halt accepting new deposits and credit transactions post-February 29.
Following a previous ban in March 2022 on acquiring new customers, the RBI mandated the termination of the bank’s nodal accounts with One97 Communications and Paytm Payments Services by February 29, 2024, at the latest. This regulatory scrutiny led to PPBL’s exclusion from NHAI’s FASTag program, managed by the Indian Highways Management Company Ltd.
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