The National Highway Authority of India (NHAI) has released an updated list of banks and financial companies authorised to issue FASTags, which does not feature Paytm Payments Bank Ltd (PPBL).
The decision came after the RBI ordered the closure of PPBL due to non-compliance and supervisory concerns. The RBI instructed PPBL to cease most banking services by February 29, with an extended deadline till March 15.
The revised list now includes 39 entities such as Airtel Payments Bank, Axis Bank Ltd, Bandhan Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, and Yes Bank, among others.
Other authorised banks and NBFCs for issuing FASTags include Allahabad Bank, AU Small Finance Bank, Bank of Maharashtra, Equitas Small Finance Bank, Dombivli Nagari Sahakari Bank, City Union Bank Ltd, Federal Bank, Fino Payment Bank, Indian Bank, Indian Overseas Bank, J&K Bank, Karnataka Bank, Karur Vysya Bank, LivQuik Technology Pvt Ltd, Nagpur Nagarik Sahakari Bank Ltd, Punjab Maharashtra Bank, Saraswat Bank, South Indian Bank, Syndicate Bank, The Jalgaon People's Co-op Bank, Thrissur District Cooperative Bank, and UCO Bank.
The purpose of the update is to offer vehicle owners more options and facilitate a smooth transition to the electronic toll collection system.
For existing Paytm FASTag holders, the advice is to request a refund of their security deposit from the company. They can do this by contacting Paytm FASTag customer service, selecting the option to permanently remove the FASTag, and following the closure process, which includes removing the FASTag from the vehicle's windscreen and uploading a photo on the Paytm app.
Additionally, investors solely registered with PPBL for their trading accounts have been cautioned by BSE to register with another bank to avoid any disruptions following the RBI's restrictions on PPBL, which include a halt on accepting fresh deposits and conducting credit transactions after March 15.
