NHAI urges FASTag users to switch from Paytm to other banks before March 15 to avoid penalties

The National Highways Authority of India (NHAI) has urged Paytm FASTag users to procure a new FASTag issued by another bank, to ensure seamless travel experience and avoid inconvenience at toll plazas.

This will help the commuters avoid penalties or any double fee charges while travelling on national highways across the country, read a statement from the Ministry of Road Transport & Highways.

Earlier, the Reserve Bank of India (RBI) imposed certain restrictions on all Paytm Payments Bank transactions. It will kick in from Friday, March 15.

"In line with the guidelines issued by the Reserve Bank of India regarding restrictions on Paytm Payments Bank, the Paytm FASTags users will not be able to recharge or top-up the balance post 15th March 2024. However, they can use their existing balance to pay the toll beyond the stipulated date," read the statement.

For any further queries or assistance related to the Paytm FASTag, users have been asked to reach out to their respective banks or refer to the FAQs provided on the official website of the Indian Highways Management Company (IHMCL).

The authority has asked all Paytm FASTag users to take proactive measures to ensure a seamless travel experience across all the national highways in India.

IHMCL, which was incorporated in December 2012 under the Companies Act, 1956, carries out electronic tolling and other ancillary projects of the NHAI.

Recently, it issued a list of 32 banks sans Paytm Payments Bank, urging commuters to buy FASTags for a hassle-free drive across all the national highways through the listed authorised banks.

According to reports, the country has a total of 70 million FASTag users. Of these, Paytm Payments Bank has claimed to have a 30% share in the market, which means that more than 20 million FASTag users may be penalised if they do not switch to other banks before March 15.

Among the 32 banks mentioned in the IHMCL list are -- Airtel Payments Bank, AU Small Finance Bank, Allahabad Bank, Axis Bank, Bank of Maharashtra, Bank of Baroda, Canara Bank, Central Bank of India, City Union Bank, Cosmos Bank, Equitas Small Finance Bank, FINO Payments Bank, Federal Bank, HDFC, ICICI, IDBI, IDFC First Bank, Indian Bank, IndusInd Bank, J&K Bank, Karnataka Bank, Kotak Mahindra Bank, Karur Vysya Bank, Nagpur Nagarik Sahakari Bank, Punjab National Bank (PNB), Saraswat Bank, South Indian Bank, State Bank of India (SBI), Thrissur District Cooperative Bank, UCO Bank, Union Bank of India and Yes Bank.