The National Highways Authority of India (NHAI) has removed fintech firm Paytm’s payments bank from its updated list of authorised FASTag issuers. This follows major business curbs imposed on Paytm Bank by the Reserve Bank of India recently owing to material supervisory concerns observed at the lender.
In a social media post, NHAI has released a list of over 30 partner banks currently allowed to issue FASTags for automatic toll collection. But Paytm Payments Bank is no longer on this list, meaning people need to discard existing tags from the company and switch to other providers immediately for seamless highway travel.
These banks are included in this list: Fino Payments Bank, HDFC Bank, ICICI Bank, IDBI bank, Idfc first Bank, Indian bank, Induslnd bank, J&K Bank, Karnataka bank, Karur Vysya bank, Kotak Mahindra Bank, Nagpur Nagarik Sahakari bank, Punjab National Bank, Sarswat bank, State Bank of India, Thrissur District Cooperative bank, UCO Bank, Union bank of India, and Yes Bank.
RBI Restrictions Prompt Exclusion
The removal of Paytm Bank as a FASTag partner follows restrictions the RBI placed on January 31st, barring the lender from taking fresh deposits and allowing credit transactions after February 28th this year. This has raised questions over operational continuity.
Earlier in March 2022 as well, the RBI had ordered Paytm Payments Bank to stop onboarding new customers amid reports of data sharing breaches. The latest constraints compel NHAI to suspend ties with Paytm Bank for its FASTag program given uncertainties over the former’s future.
Industry experts say more clarification is needed regarding people currently holding Paytm tags to avoid sudden issues for them. But acquiring tags from active NHAI partner banks seems the prudent option for now.
