Paytm Payments Bank not on list of 32 authorised banks for FASTag. Here’s why
In the midst of the ongoing controversy after the Reserve Bank of India crackdown, Paytm Payments Bank was left out of the list of 32 banks authorisied to issue new FASTag for vehicles, issued by the road tolling authority.
The Indian Highway Management Company (IHMCL), which is the tolling arm of the National Highways Authority of India (NHAI), issued a list of 32 authorities banks to get FASTag on vehicles in an X post.
“Travel hassle-free with FASTag! Buy your FASTag today from below authorised banks,” IHMCL said, leaving out Paytm Payments Bank from the list of 32 authorised banks.
The reason why Paytm Payments Bank was left out of the list was to ensure that Paytm FASTag users do not face any issues at tolling booths after RBI’s February 29 deadline for the bank, reported The Economic Times citing sources.
The sources further said that the government is apprehensive of the inconvenience that will be caused to Paytm FASTag users. However, “no bank is willing to board Paytm FASTag users as of now.”
“The only option left for such customers is to cancel the Paytm FASTag and buy new ones from any of the banks (listed by IHMCL),” a source told ET. It must be noted that Paytm Payments Bank has approximately 20 million FASTag users across the country.
It must be noted that Paytm FASTag users will be able to use it to pay highway tolls till the balance in their account runs out, but they won’t be able to recharge it after February 29, 2024.
Earlier, IHMCL had issued a letter banning Paytm Payments Bank from issuing any new FASTags due to the recent controversy regarding its KYC verification, and the report issued by the Reserve Bank of India.
What RBI said about Paytm Payments Bank
The Reserve Bank of India in January issued a report saying that Paytm Payments Bank faces charges of non-compliance with its banking regulatory rules, and needs to halt its operations by February 29.
RBI noted in its report that Paytm Payments Bank has not been complying with the mandatory KYC rules imposed by the banking regulator, which gives rise to concerns about money laundering.
Recently, RBI governor Shaktikanta Das said that the central bank will not review or change its decision against the payments bank, with the deadline to stop all new deposits and transactions by February 29 still in place.
