NHAI removes Paytm Payments Bank from the list of authorized banks for FASTag service due to regulatory concerns. The list now includes 30 banks like Airtel Payments Bank, Axis Bank, HDFC Bank, and others.
FASTag is a device that uses RFID technology for toll payments while the vehicle is moving. The RFID chip is placed on the vehicle’s windscreen, allowing customers to make toll payments directly from their linked account. It is used at over 750 toll plazas across the country.
The management of NHAI FASTag is handled by the Indian Highways Management Company Ltd. Paytm Payments Bank faced regulatory action from the Reserve Bank of India, leading to business restrictions and a halt in customer onboarding after February 29.
The dispute arose after RBI imposed restrictions on Paytm Payments Bank, including terminating nodal accounts by February 29, 2024. This move follows the central bank’s decision in March 2022 to prevent Paytm Payments Bank from acquiring new customers.