NHAI asks Paytm FASTag users to switch to other platforms by March 15
Upstox
2 min read • Updated: March 13, 2024, 6:08 PM
Summary
This will help in avoiding penalties or any double fee charges, while commuting on national highways, the government agency said.
Paytm FASTag users should switch to FASTags offered by other banks before March 15 to avoid inconvenience at toll plazas, the National Highways Authority of India (NHAI) said in an advisory issued on Wednesday, March 13.
“This will help in avoiding penalties or any double fee charges while commuting on national highways,” it said.
Paytm FASTag, issued by the embattled Paytm Payments Banks Ltd (PPBL), has been removed from the NHAI’s list of FASTags that are offered by the authorised banks and non-bank financial companies (NBFCs).
In its advisory, the NHAI reiterated that Paytm FASTag users “will not be able to recharge or top-up the balance” post March 15, which is the deadline issued by the Reserve Bank of India (RBI) for PPBL to stop accepting deposits and facilitating fresh transactions.
However, Paytm FASTag users can use their existing balance to pay tolls at the highways beyond the stipulated date.
Notably, a total of 6.4 crore FASTags were issued in India as of January 2024, and Paytm claims to have a market share of 30%.
The RBI action against PPBL, the banking arm of Paytm, was announced in January. The lender has come under the central bank’s radar for alleged violation of KYC norms.
Earlier this month, the Financial Intelligence Unit (FIU) submitted a report to the RBI, which said that PPBL failed to install an apparatus for detecting and reporting suspicious transactions under the Prevention of Money Laundering Act (PMLA).