NHAI Arm Takes Action: Paytm Payments Bank Banned from Issuing Fresh FASTags!

Editorial Desk · 2024-01-29T11:18:26+05:30

The NHAI arm, IHMC, has placed a ban on Paytm Payments Bank from issuing new FASTags due to regulatory non-compliance. Instances of non-compliance with service level agreement parameters during an agency audit led to this decision. Consequently, Paytm Payments Bank is prohibited from taking over new toll plazas. IHMC has issued a show-cause notice to Paytm Payments Bank, asking why penal action should not be taken against the fintech.The freeze on Paytm FASTag issuance was prompted by an audit based on customer complaints received by NHAI. These grievances encompass delays in FASTag activation, unexpected deductions, issuance of the same FASTag to multiple individuals, and delayed recharge credits to the FASTag wallet. The deadline for updating KYC for FASTags is January 31, 2024. Failure to update KYC by this date will result in the deactivation and delisting of the FASTag by the issuing bank.FASTag operates on a Radio Frequency Identification (RFID) system, where a tag is affixed to the vehicle windscreen and linked to the owner's bank account or prepaid wallet. When a vehicle passes through a toll plaza, the tag code is read, and the toll amount is deducted from the owner's wallet. However, the government may soon introduce GPS-based toll collection, potentially rendering FASTag redundant.

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NHAI Arm Takes Action: Paytm Payments Bank Banned from Issuing Fresh FASTags!
Posted by Editorial Desk on January 29, 2024 at 11:18 am
The NHAI arm, IHMC, has placed a ban on Paytm Payments Bank from issuing new FASTags due to regulatory non-compliance. Instances of non-compliance with service level agreement parameters during an agency audit led to this decision. Consequently, Paytm Payments Bank is prohibited from taking over new toll plazas. IHMC has issued a show-cause notice to Paytm Payments Bank, asking why penal action should not be taken against the fintech.
The freeze on Paytm FASTag issuance was prompted by an audit based on customer complaints received by NHAI. These grievances encompass delays in FASTag activation, unexpected deductions, issuance of the same FASTag to multiple individuals, and delayed recharge credits to the FASTag wallet. The deadline for updating KYC for FASTags is January 31, 2024. Failure to update KYC by this date will result in the deactivation and delisting of the FASTag by the issuing bank.
FASTag operates on a Radio Frequency Identification (RFID) system, where a tag is affixed to the vehicle windscreen and linked to the owner’s bank account or prepaid wallet. When a vehicle passes through a toll plaza, the tag code is read, and the toll amount is deducted from the owner’s wallet. However, the government may soon introduce GPS-based toll collection, potentially rendering FASTag redundant.

Editorial Desk replied 10 months, 3 weeks ago 1 Member · 0 Replies
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