NHAI excludes PayTm from the approved list of banks for issuing FASTags

The National Highways Authority of India (NHAI) has made the decision to remove PayTm as one of the authorized banks to issue FASTags. This move comes after the Reserve Bank of India (RBI) directed the stoppage of deposits or top-ups in any customer accounts, wallets, and FASTags managed by PayTm Payments Bank.

The Indian Highways Management Company Ltd (IHMCL), which handles toll collection on behalf of NHAI, has advised PayTm FASTags users to obtain new ones from 32 other authorized banks for a seamless experience at toll gates. The decision to delist PayTm as a provider of FASTags follows the recent actions taken by the RBI regarding PayTm Payments Bank.

IHMCL announced on social media that PayTm FASTags will no longer be accepted. The agency had previously prohibited PayTm Payments Bank from issuing new FASTags on January 19, and the RBI had stopped the addition of funds to the PayTm wallet and FASTags from February 29.

According to the NHAI, PayTm FASTag holds a 30% market share with over eight crore users across India. The NHAI’s list of authorized banks that can issue FASTags includes 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.

FASTag is an electronic toll collection system in India operated by the NHAI, using Radio Frequency Identification (RFID) technology for seamless toll payments.

Individuals can apply for a new FASTag for their vehicles through online banking from 23 registered banks. However, it is not possible to transfer a PayTm FASTag to another bank. Users are advised to buy a new FASTag from one of the authorized banks to continue enjoying the service.

As of the present situation, it is unlikely that PayTm FASTags will function beyond March unless there is a sufficient balance. Therefore, individuals are recommended to purchase a new FASTag from a different bank. It is still unclear if PayTm will continue to allow top-ups through other banks, but third-party apps like Google Pay and PhonePe can be used as an alternative for recharging FASTags.