NHAI issues advisory for Paytm FASTag users

To ensure seamless travel experience and avoid inconvenience at toll plazas, the National Highways Authority of India (NHAI) has advised Paytm FASTag users to procure a new FASTag issued by another bank before March 15, 2024. This will help in avoiding penalties or any double fee charges while commuting on National Highways.

In line with the guidelines issued by the Reserve Bank of India (RBI) regarding restrictions on Paytm Payments Bank, users of Paytm FASTags will not be able to recharge or top-up the balance post March 15, 2024. However, they can use their existing balance to pay toll beyond the stipulated date.

"For any further queries or assistance related to Paytm FASTag, users can reach out to their respective banks or refer to the FAQs provided on the IHMCL website. NHAI has urged all Paytm FASTag users to take proactive measures to ensure a seamless travel experience on the National Highways across the country," the Ministry of Road Transport & Highways says.

Several vehicle owners use Paytm FASTag to pay fees at toll plazas operated by the NHAI. The highway authority had earlier removed Paytm Payments Bank from its list of 30 authorised banks for the FASTag service.

In February, the RBI released a list of Frequently Asked Questions (FAQs) to inform customers in detail about business restrictions imposed on Paytm Payments Bank. “No further funding or top ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience,” the RBI had said.

The banking regulator said that credit balance transfer feature is not available in the FASTag product. Users will have to close their old FASTag issued by Paytm Payments Bank and request the bank for a refund, it added.

On January 31, the RBI ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts and wallets from March. Paytm Payments Bank is 51% owned by Paytm CEO Vijay Shekhar Sharma while the remaining 49% is owned by One 97 Communications.

The supervisory action on Paytm Payments Bank was taken after persistent non-compliance and months and years of bilateral engagement with the company, said RBI deputy governor Swaminathan J.

The banking regulator gave ample time to Paytm Payments bank to comply with regulations and business restrictions were imposed only when the entity did not listen to constructive engagement, said RBI governor Shaktikanta Das.

"We give sufficient time to every RE to comply with the requirements. Sometimes it may look more than sufficient. We are a responsible regulator. If everything has been complied with, then why should we act," Das said in RBI's post-policy press conference.