Paytm FASTag ends Feb 29th: 20M users face toll sticker swap due to RBI ban
The National Highways Authority of India (NHAI) has recently issued a renewed advisory, encouraging individuals to obtain FASTags exclusively from authorised banks. Interestingly, Paytm has been notably excluded from the list.
NHAI shared a list of 32 banks through X, specifying approved sources for purchasing FASTags for vehicles. According to reports, individuals possessing Paytm FASTags are advised to exchange them for authorised bank-issued ones to ensure smooth travel on the NH network, eliminating potential complications.
The Indian Highways Management Company, as per an ET report, has recommended highway users to acquire FASTags from a selection of 32 authorised banks, excluding Paytm Payments Bank from the list.
Consequently, around 20 million Paytm FASTag users will need to obtain new RFID (radio frequency identification) stickers.
The conflict with Paytm arose following significant business restrictions imposed by the Reserve Bank of India (RBI) on January 31. These restrictions include prohibiting Paytm Payments Bank from accepting new deposits and engaging in credit transactions after February 29. In March 2022, the central bank had already barred Paytm Payments Bank from onboarding new customers.
On January 31, the RBI instructed the bank to cease onboarding new customers immediately. In an official press release, the RBI stated that the nodal accounts of One97 Communications and Paytm Payments Services must be terminated promptly, with the deadline set no later than February 29, 2024.
