In an official statement, the National Highways Authority of India (NHAI) has advised Paytm FASTag users to obtain a new FASTag from another bank before March 15 to ensure a smooth travel experience and avoid inconvenience at toll plazas.
It has been told that the step has been taken to help the users avoid penalties or double fee charges while commuting on National Highways.
What is FASTag?
FASTag is an electronic toll collection system in India, operated by the NHAI. It employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid or savings account linked to it or directly toll owner.
About the new guideline
Following the Reserve Bank of India's guidelines on restrictions concerning Paytm Payments Bank, the statement said Paytm FASTag users will no longer have the option to recharge or top-up their balance after March 15, 2024.
However, they can continue to use the existing balance to pay tolls beyond the stipulated date, it added.
NHAI also advised Paytm FASTag users to reach out to their respective banks or refer to the FAQs provided on the IHMCL (Indian Highway Management Company Limited) website.
Last month, the Reserve Bank of India (RBI) had advised customers as well as merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15.
On FASTags, the RBI's FAQs had said one can continue to use them to pay tolls up to the available balance.
"However, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024," it had said.
