Paytm, amid already challenging times, faced yet another setback as the National Highway Authority of India (NHAI) officially removed Paytm Payments Bank Ltd (PPBL) from its list of 30 authorized banks for FASTag service.
In the notice sent to the company by the RBI last month, it was mentioned that no further deposits, credit transactions, or top-ups would be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after February 29th.
Despite this directive, people remained hopeful, given reports indicating that Vijay Shekhar Sharma was in discussions with the RBI regarding the regulatory concerns. This development had signalled that a solution might be forthcoming. However, reality set in when the NHAI'S tolling vertical, IHMCL (Indian Highways Management Company) took it to X, mentioning the names of 30 exclusive banks authorized to sell FASTags.
"Travel hassle-free with FASTag! Buy your FASTag today from authorised banks," the post read, mentioning the names of all the registered FASTag providers.
A FASTag serves as an attachment to a vehicle's windscreen, linked to either a bank account or a prepaid card. At toll plazas, a scanner recognizes the FASTag and deducts toll charges directly from the associated bank account or prepaid card.
NHAI has enlisted various banks for FASTag services, including HDFC Bank, ICICI Bank, IDBI Bank, IDFC Bank, IndusInd Bank, Kotak Mahindra Bank, Airtel Payments Bank, Allahabad Bank, SBI, UCO Bank, AU Small Finance Bank, Axis Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank, among others.
