Major action has been taken against Paytm Payments Bank by Indian Highway Management Company Limited (IHMCL) associated with NHAI. After strict instructions, now Paytm Payments Bank will not be able to issue new FASTag.
Paytm Payments Bank will not be able to issue new FASTag
Getting a new FASTag is no longer as easy as before because Paytm Payments Bank has banned the issuance of new FASTags. According to media reports, this ban has been imposed by the Indian Highway Management Company Limited (IHMCL) associated with the National Highway Authority of India (NHAI).
IHMCL has been given the ability to take decisions on toll related matters by NHAI. It found that the parameters and rules set for the service-level agreement (SLA) were not being followed by Paytm Payments Bank. This is the reason why Paytm Payments Bank has been barred from issuing new FASTag.
Paytm got a big shock
Due to the new decision, Paytm has been barred from issuing FASTag at any new toll plaza. This restriction has been implemented for all those toll plazas which are part of the National Electronic Toll Collection. It covers all the National Highway networks across the country.
IHMCL had sought answers
Last Friday, a letter was sent by IHMCL to Paytm Payments App. In this letter, IHMCL had asked why action should not be taken against the company for not following the rules. After Paytm, other companies and agencies issuing FASTag are also being closely monitored and action may be taken against them.