RBI curbs: Paytm Payments Bank excluded from authorized FASTag issuers
The Indian Highways Management Company (IHMCL), a subsidiary of the National Highways Authority of India (NHAI), has announced a list of 32 authorized banks for issuing new FASTags. This list excludes the Paytm Payments Bank because the Reserve Bank of India (RBI) has prohibited it from providing services after February 29, rendering Paytm FASTags inoperative from March. IHMCL has advised users to purchase FASTags from an authorized bank to avoid any inconvenience.
Paytm FASTag users advised to switch to other banks
Over 20 million Paytm FASTag users may face issues after the cut-off date, and IHMCL is working to ensure a smooth experience on toll roads. As per The Economic Times, "no bank is willing to board Paytm FASTag users as of now." The only option for these customers is to cancel their Paytm FASTag and buy new ones from any of the banks listed by IHMCL. Paytm Payments Bank has not commented on this issue.
List of authorized banks for issuing FASTags
IHMCL's fresh list of authorized banks for issuing FASTags includes 32 banks including Airtel Payments Bank, Allahabad Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, UCO Bank, Union Bank of India and Bank of India. The exclusion of Paytm Payments Bank is due to its non-compliance with mandatory KYC norms, resulting in a ban on issuing fresh FASTags, apart from other restrictions.
Paytm stocks fall another 2% to hit new record low
Meanwhile, the stocks of Paytm continued to slide further as they fell another 2% to hit a new record low of Rs. 318.05 in today's session. With no hopes of relief from RBI, the fintech giant has lost a total of Rs. 27,000 crore in the last 11 trading days—a loss of 57% of its market value. Paytm is also facing an inquiry from the Enforcement Directorate for alleged violations of foreign exchange regulations and allegations of money laundering.
