In a bid to ensure uninterrupted travel convenience for commuters traversing national highways, the National Highways Authority of India (NHAI) has issued a directive advising Paytm FASTag users to transition to FASTags issued by alternative banks before March 15, 2024.
This proactive measure aims to pre-empt any potential disruptions or penalties encountered at toll plazas and safeguard users from incurring double fee charges during their journeys, as highlighted in the advisory released. The restrictions imposed by the Reserve Bank of India on all Paytm Payments Bank transactions will kick in from Friday. “In line with the guidelines issued by the Reserve Bank of India regarding restrictions on Paytm Payments Bank, the Paytm FASTags users will not be able to recharge or top-up the balance post 15th March 2024,” the ministry of road transport and highways said.
IHMCL, a subsidiary of NHAI, has furnished a comprehensive list comprising 32 authorised banks, excluding Paytm Payments Bank, where users can procure FASTags to streamline their highway traversals seamlessly. With India boasting a substantial user base of over 70 million FASTag users, Paytm Payments Bank lays claim to a significant market share of 30%. Consequently, over 20 million users risk facing operational hiccups if they fail to transition to alternate issuing banks within the stipulated timeline. The enumerated list of authorised banks encompasses renowned financial institutions such as Airtel Payments Bank, Axis Bank, HDFC Bank, ICICI Bank, State Bank of India, and Yes Bank, among others. This diversified array of options ensures users have ample choices to select from for a hassle-free FASTag procurement process.
The directive issued by IHMCL on January 19, 2024, barring Paytm Payments Bank from issuing new FASTags and undertaking toll plaza expansions due to non-compliance with mandatory Know Your Customer (KYC) norms, further underscores the imperative for users to initiate the transition promptly. As the deadline looms, NHAI reiterates its commitment to facilitating smooth highway operations and ensuring commuter satisfaction. By adhering to the prescribed guidelines and transitioning to alternative FASTag issuers, users can circumvent potential disruptions and contribute to the seamless functioning of the national highway network.