On March 13, NHAI suggested Paytm FASTag customers to acquire a brand new FASTag issued by one other financial institution earlier than March 15, 2024. (Representative picture)
On March 13, NHAI beneficial that Paytm Bank FASTag customers receive a brand new FASTag issued by one other financial institution previous to March 15, 2024.
In the wake of regulatory measures by the Reserve Bank of India (RBI) on Paytm Payments Bank, a big variety of its present FASTag prospects are reportedly shifting in the direction of the FASTag providers offered by HDFC Bank or Axis Bank.
FASTag is an digital toll assortment system in India, operated by the National Highways Authority of India (NHAI). It employs Radio Frequency Identification (RFID) know-how for making toll funds straight from the pay as you go or financial savings account linked to the FASTag.
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According to a report by Moneycontrol, the transition is predominantly continuing with out hitches as prospects have a large number of FASTag providers supplied by varied banks to pick from.
“We have seen FASTag customers moving their accounts to several banks but the majority have opted for HDFC Bank and Axis Bank. The process is in the early stages and customers have several banks to choose from,” a senior govt from Paytm informed Moneycontrol.
In compliance with the RBI’s directives regarding limitations on Paytm Payments Bank, FASTag customers of the financial institution will not have the choice to recharge or add funds to their accounts after March 15, 2024. Nonetheless, they preserve the flexibility to utilise their present balances for toll funds past the desired date.
“NPCI has listed 39 banks for customers to choose from. And the choice of a bank is solely based on customer preference,” one other supply mentioned.
Change in FASTag
On March 13, the National Highways Authority of India (NHAI) suggested Paytm FASTag customers to acquire a brand new FASTag issued by one other financial institution earlier than March 15, 2024. This will assist in avoiding penalties or any double payment expenses whereas commuting on National Highways, mentioned the Ministry of Road Transport & Highways (MoRTH).
RBI restrictions
On January 31, the RBI carried out vital enterprise constraints on Paytm Payments Bank, which included prohibiting the acceptance of recent deposits and conducting credit score transactions after February 29. The regulatory physique recognized vital irregularities in KYC procedures, posing critical dangers to prospects, depositors, and pockets holders.
In February 2023, the RBI suggested prospects and retailers of Paytm Payments Bank to switch their accounts to different banks by March 15. The central financial institution acknowledged that withdrawals or utilization of balances by PPBL prospects from varied accounts, resembling financial savings accounts, present accounts, pay as you go devices, FASTags, and nationwide frequent mobility playing cards, can be allowed with out limitations as much as their obtainable stability, even after March 15.
