The National Highway Authority of India (NHAI) has recently updated the list of banks and financial entities authorized to issue FASTags, and notably, Paytm Payments Bank Ltd (PPBL) is no longer featured among the 39 entities listed. This development comes in the wake of the Reserve Bank of India’s (RBI) directive to close PPBL due to non-compliance and supervisory concerns. The RBI instructed PPBL to cease most banking services by February 29, with an extended deadline till March 15.
The revised list of authorized FASTag issuers now includes prominent entities such as Airtel Payments Bank, Axis Bank Ltd, Bandhan Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, and Yes Bank, among others.
Other authorized banks and non-banking financial companies (NBFCs) for issuing FASTags comprise Allahabad Bank, AU Small Finance Bank, Bank of Maharashtra, Equitas Small Finance Bank, Dombivli Nagari Sahakari Bank, City Union Bank Ltd, Federal Bank, Fino Payment Bank, Indian Bank, Indian Overseas Bank, J&K Bank, Karnataka Bank, Karur Vysya Bank, LivQuik Technology Pvt Ltd, Nagpur Nagarik Sahakari Bank Ltd, Punjab Maharashtra Bank, Saraswat Bank, South Indian Bank, Syndicate Bank, The Jalgaon People’s Co-op Bank, Thrissur District Cooperative Bank, and UCO Bank.
The primary objective behind this update is to provide vehicle owners with a broader range of options and facilitate a seamless transition to the electronic toll collection system.
For existing Paytm FASTag holders, the recommendation is to initiate a refund of their security deposit from the company. This can be accomplished by contacting Paytm FASTag customer service, selecting the option to permanently remove the FASTag, and following the closure process, which involves removing the FASTag from the vehicle’s windscreen and uploading a photo on the Paytm app.
Additionally, investors who solely registered with PPBL for their trading accounts have been advised by the Bombay Stock Exchange (BSE) to register with another bank to avoid potential disruptions in the wake of the RBI’s restrictions on PPBL. These restrictions include a halt on accepting fresh deposits and conducting credit transactions after March 15.
The updated list aims to ensure that vehicle owners have a smooth experience with FASTags while aligning with regulatory measures concerning the closure of Paytm Payments Bank.
