Recent FASTag Development: Acquiring a new FASTag has become more challenging, as Paytm Payments Bank is now prohibited from issuing new FASTags. The ban, imposed by the Indian Highway Management Company Limited (IHMCL) in association with the National Highway Authority of India (NHAI), comes after IHMCL found that Paytm Payments Bank was not adhering to the parameters and rules outlined in the service-level agreement (SLA).
IHMCL, empowered by NHAI to make decisions on toll-related matters, has enforced this restriction due to non-compliance with the SLA by Paytm Payments Bank. Consequently, Paytm is now barred from issuing FASTags at any new toll plaza, affecting all toll plazas under the National Electronic Toll Collection, encompassing the National Highway networks across the country.
This decision serves as a significant setback for Paytm, and other companies and agencies involved in FASTag issuance are under scrutiny. IHMCL has sent a letter to Paytm Payments Bank seeking explanations for its non-compliance, and similar actions may be taken against other entities involved in FASTag issuance.
