On March 13, NHAI suggested Paytm FASTag customers to obtain a brand new FASTag issued by one other financial institution earlier than March 15, 2024. (Consultant picture)
On March 13, NHAI really helpful that Paytm Financial institution FASTag customers receive a brand new FASTag issued by one other financial institution previous to March 15, 2024.
Within the wake of regulatory measures by the Reserve Financial institution of India (RBI) on Paytm Funds Financial institution, a major variety of its current FASTag prospects are reportedly shifting in direction of the FASTag providers offered by HDFC Financial institution or Axis Financial institution.
FASTag is an digital toll assortment system in India, operated by the Nationwide Highways Authority of India (NHAI). It employs Radio Frequency Identification (RFID) expertise for making toll funds instantly from the pay as you go or financial savings account linked to the FASTag.
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In response to a report by Moneycontrol, the transition is predominantly continuing with out hitches as prospects have a large number of FASTag providers supplied by varied banks to pick from.
“We now have seen FASTag prospects shifting their accounts to a number of banks however the majority have opted for HDFC Financial institution and Axis Financial institution. The method is within the early phases and prospects have a number of banks to select from,” a senior govt from Paytm instructed Moneycontrol.
In compliance with the RBI’s directives regarding limitations on Paytm Funds Financial institution, FASTag customers of the financial institution will now not have the choice to recharge or add funds to their accounts after March 15, 2024. Nonetheless, they preserve the flexibility to utilise their current balances for toll funds past the desired date.
“NPCI has listed 39 banks for patrons to select from. And the selection of a financial institution is solely based mostly on buyer desire,” one other supply stated.
Change in FASTag
On March 13, the Nationwide Highways Authority of India (NHAI) suggested Paytm FASTag customers to obtain a brand new FASTag issued by one other financial institution earlier than March 15, 2024. It will assist in avoiding penalties or any double charge prices whereas commuting on Nationwide Highways, stated the Ministry of Street Transport & Highways (MoRTH).
RBI restrictions
On January 31, the RBI applied important enterprise constraints on Paytm Funds Financial institution, which included prohibiting the acceptance of recent deposits and conducting credit score transactions after February 29. The regulatory physique recognized important irregularities in KYC procedures, posing critical dangers to prospects, depositors, and pockets holders.
In February 2023, the RBI suggested prospects and retailers of Paytm Funds Financial institution to switch their accounts to different banks by March 15. The central financial institution said that withdrawals or utilization of balances by PPBL prospects from varied accounts, comparable to financial savings accounts, present accounts, pay as you go devices, FASTags, and nationwide frequent mobility playing cards, can be allowed with out limitations as much as their obtainable steadiness, even after March 15.
