The toll-collecting arm of the National Highways Authority of India (NHAI), the Indian Highways Management Company Ltd (IHMCL), has recommended that highway users acquire FASTags from 32 authorized banks, excluding Paytm Payments Bank (PPBL). These banks include Airtel Payments Bank, Allahabad Bank, Bank of Baroda, HDFC Bank, ICICI Bank, IDBI Bank, Punjab National Bank, State Bank of India, and Yes Bank, among others.
The Reserve Bank of India (RBI), in its FAQs on Friday, affirmed that FASTags can be used to pay tolls up to the available balance. The RBI also advised customers and merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15, allowing 15 more days for the troubled entity to close most of its operations.
The RBI clarified that customers can use their FASTags to pay tolls up to the available balance, but no further funding or top-ups will be allowed in FASTags issued by Paytm Payments Bank after March 15, 2024. To avoid inconvenience, customers are advised to obtain a new FASTag from another bank before March 15, 2024.
Regarding the credit balance transfer feature, the RBI stated that it is not available in the FASTag product. Customers need to close their old FASTags issued by Paytm Payments Bank and request a refund from the bank.
Withdrawals or utilization of balances by Paytm Payments Bank customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, will be permitted without any restrictions, up to their available balance even beyond March 15.
IHMCL is encouraging FASTag users to complete the ‘Know Your Customer’ (KYC) process for their latest FASTags as per RBI guidelines. The authorized banks for issuing FASTags include Union Bank of India, Thrissur District Cooperative Bank, South Indian Bank, Saraswat Bank, Nagpur Nagrik Sahkari Bank, Kotak Mahindra Bank, Karur Vysya Bank, J&K Bank, IndusInd Bank, Indian Bank, IDFC First Bank, FINO Bank, Equitable Small Finance Bank, Cosmos Bank, City Union Bank Ltd, Central Bank of India, Canara Bank, Bank of Maharashtra, AU Small Finance Bank, and Axis Bank.
Update on paytm fastags from RBI
India has over 7 crores fastag users out of which 2 crores are using fastag issued by paytm
After 15th March you won't be able to use fastag issued by paytm, so its better to buy another fastag from list of 32 authorized lenders pic.twitter.com/WSbwlQQpja
— Vibhor Varshney (@nakulvibhor) February 16, 2024
FASTag is an electronic toll collection system in India that utilizes Radio Frequency Identification (RFID) technology to enable toll payments directly from linked bank accounts.