Anand India’s road tolling authority has excluded Paytm Payments Bank from its list of 32 authorised banks for purchasing FASTags, signalling significant changes for the estimated 20 million Paytm FASTag users.
FASTags refers to an electronic toll collection system in India which was introduced by the National Highways Authority of India (NHAI).
The move follows regulatory restrictions imposed on Paytm Payments Bank by the Reserve Bank of India (RBI), which will result in Paytm FASTags becoming non-operative after February 29.
This development implies that millions of Paytm FASTag users will need to acquire new RFID (Radio Frequency Identification) stickers to ensure seamless toll road access.
Despite Paytm’s market share, no banks are currently willing to accommodate Paytm FASTag users, leaving them with the option to switch to FASTags issued by other authorised banks.
While the RBI’s decision to restrict Paytm Payments Bank’s operations remains unchanged, IHMCL emphasises the importance of facilitating a smooth transition for Paytm FASTag users to alternative bank-issued FASTags.
With over 70 million FASTag users across India, ensuring minimal inconvenience during this transition period is paramount.
According to a Times of India report, the authorised banks for issuing FASTags include major financial institutions such as Airtel Payments Bank, Axis Bank, HDFC Bank, and State Bank of India, among others.
