New Delhi: Indian Highways Management Company Ltd (IHMCL), the toll collecting arm of the state-owned NHAI, has advised that highway users purchase FASTags from 32 authorized banks, excluding Paytm Payments Bank, to ensure convenient travel.
IHMCL, in a statement on X, said that obtaining your FASTag from one of the 32 authorized banks is important for a seamless travel experience.
Among the 32 authorized banks are Airtel Payments Bank, Allahabad Bank, Bank of Baroda, HDFC Bank, ICICI Bank, IDBI Bank, Punjab National Bank, State Bank of India, and Yes Bank, among others.
According to a senior NHAI official speaking to PTI, India has more than 8 crore FASTag users, with Paytm Payments Bank (PPBL) holding approximately 30% of the market share.
In a communication dated January 19, 2024, IHMCL had previously prohibited Paytm Payments Bank from issuing new FASTags.
On January 31, the Reserve Bank directed Paytm Payments Bank (PPBL) to cease accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29. However, any interest, cashbacks, or refunds may be credited back to customers at any time.
“No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” the RBI said.
Additionally, customers are allowed to withdraw or use balances from their accounts, including savings and current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, without any restrictions, up to the available balance.
“No other banking services, other than those …like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc), BBPOU and UPI facility should be provided by the bank after February 29, 2024,” it added.
The central bank said that the directive was issued due to ongoing material supervisory concerns and persistent non-compliances.
IHMCL is encouraging FASTag users to complete the ‘Know Your Customer’ (KYC) process for their latest FASTag, following RBI guidelines.
The banks authorized to issue FASTags include Union Bank of India, Thrissur District Cooperative Bank, South Indian Bank, Saraswat Bank, Nagpur Nagrik Sahkari Bank, Kotak Mahindra Bank, Karur Vyasya Bank, J&K Bank, IndusInd Bank, Indian Bank, IDFC First Bank, FINO Bank, Equitable Small Finance Bank, Cosmos Bank, City Union Bank Ltd, Central Bank of India, Canara Bank, Bank of Maharashtra, AU Small Finance Bank, and Axis Bank.
FASTag, operated by NHAI, is an electronic toll collection system in India that utilizes Radio Frequency Identification (RFID) technology for toll payments directly from linked bank accounts.