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Paytm Payments Bank Replaced as Acquirer Bank at 247 Toll Plazas

The National Highway Authority of India (NHAI) has replaced Paytm Payments Bank with nine other authorized banks to function as an acquirer bank at 247 toll plazas. This move by NHAI follows the Reserve Bank of India’s (RBI) order on January 31, 2024, vide Press Release No. 2023-2024/1774, to Paytm Payments Bank to stop all basic payment services from February 29, 2024, including further deposits, credit transactions or top-ups of FASTag.

 

Subsequently, on February 16, 2024, the RBI, vide Press Release No. 2023-2024/1895, extended the date for suspension of services to March 15, 2024. The Indian Highway Management Company Limited (IHCML), which operates under NHAI banned Paytm Payments Bank from issuing new FASTags and expanding to new toll plazas in its letter dated January 19, 2024, because of the failure to comply with mandatory KYC norms.