NHAI urges Paytm FASTag users to switch to other bank FASTag

The National Highways Authority of India (NHAI) has issued a critical advisory for Paytm FASTag users, urging them to switch to a FASTag issued by another bank before the looming deadline of March 15. 

According to the agency, the move is essential to ensure a smooth travel experience on national highways and to avoid potential penalties or double fee charges at toll plazas.

RBI restrictions prompt action

The advisory follows guidelines from the Reserve Bank of India (RBI) imposing restrictions on Paytm Payments Bank, which directly affect the ability of Paytm FASTag users to recharge their accounts after March 15, 2024.

Despite these restrictions, users can still utilize their existing balance for toll payments beyond this date. The NHAI's announcement aims to preempt any inconvenience for travelers by facilitating a seamless transition to other bank FASTags.

Updated list of authorized FASTag providers

In response to the RBI's guidelines, the NHAI has also updated its list of banks and financial companies authorized to issue FASTags. This comprehensive list now includes 39 entities, such as Airtel Payments Bank, Axis Bank Ltd, and HDFC Bank, among others. This update is part of NHAI's efforts to ensure that highway users have access to a wide range of options for their FASTag needs.

The backdrop to this advisory is a series of regulatory challenges faced by Paytm Payments Bank. Despite receiving approval from the RBI to operate as a Bharat Bill Payment Operating Unit (BBPOU), the bank was banned from acquiring new customers in March of the previous year due to "certain material supervisory concerns."This ban has had a cascading effect on the services it provides, including FASTag recharges.

Proactive measures advised for seamless travel

NHAI's advisory underscores the importance of taking proactive steps to ensure uninterrupted travel on national highways. By switching to a FASTag from an authorized bank or financial company, users can avoid potential disruptions.

The NHAI has made resources available, including FAQs on the Indian Highway Management Company Limited (IHMCL) website, to assist users in making this transition smoothly.