Paytm Banned From Issuing New FASTags Because Of This Reason!


Mohul Ghosh

Mohul Ghosh

Jan 29, 2024


Paytm Payments Bank faces a suspension on acquiring new FASTag customers imposed by the government’s tolling arm, IHMCL. Paytm also cannot onboard additional national highway toll plazas for toll collections under the sweeping restrictions.

Paytm Banned From Issuing New FASTags Because Of This Reason!

IHMCL took the stern call alleging Paytm’s non-adherence with the service-level agreement, specifically around parameters like system uptime and customer complaint redressal. It shot off a letter demanding an explanation on why penal action should not be pursued.

Violations Possibly Around Uptime, Complaints

While further infractions remain unclear, IHMCL was seemingly upset regarding subpar uptime levels of systems that authenticate and deduct payments from commuters along with tardy complaint resolution that inconvenienced FASTag users of Paytm Payments Bank.

The entity manages the entire National Electronic Toll Collection network spanning toll plazas across national highways. With millions of vehicles, ensuring smooth customer journeys is vital.

Other Banks Also Under Evaluation

As per NHAI officials quoted, more such adverse actions against other banks for poor FASTag services cannot be ruled out. The government is pushing large-scale digitization and integration of tolling processes under the NETC program. Teething troubles around reliability, transparency and customer experience defeat the purpose.

NHAI seems focused on raising standards uniformly for seamless nationwide toll collections, rather than allow perpetuation of fragmented systems. The suspension order against market leader Paytm Payments Bank signals increased scrutiny on ecosystem preparedness to maintain quality.


Mohul Ghosh
Mohul Ghosh
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