Paytm FASTag customers must switch to alternative banks by Mar 15: NHAI
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New Delhi: The National Highways Authority of India (NHAI) has advised Paytm FASTag users to obtain a new one from another bank before March 15 to ensure a smooth travel experience and avoid inconvenience at toll plazas, an official statement said on Wednesday.
This will help avoid penalties or double fee charges while commuting on National Highways, as per the statement.
Following the Reserve Bank of India's guidelines on restrictions concerning Paytm Payments Bank, the statement said Paytm FASTag users will no longer have the option to recharge or top-up their balance after March 15, 2024. However, they can continue to use the existing balance to pay tolls beyond the stipulated date, it added.
NHAI also advised Paytm FASTag users to reach out to their respective banks or refer to the FAQs provided on the IHMCL (Indian Highway Management Company Limited) website.
Last month, the Reserve Bank of India (RBI) advised customers as well as merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15.
The RBI had also said withdrawal or utilisation of balances by PPBL customers from their accounts, including saving 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.
On FASTags, the RBI's FAQs said one can continue to use them to pay tolls up to the available balance. "However, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024," it had said.
With a penetration rate of around 98 per cent and over 8 crore users, FASTag has revolutionised the electronic toll collection system in the country.
FASTag is an electronic toll collection system in India, operated by the NHAI. It employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid or savings account linked to it or directly from the toll owner.