Active Stocks
Thu Apr 18 2024 15:59:07
  1. Tata Steel share price
  2. 160.00 -0.03%
  1. Power Grid Corporation Of India share price
  2. 280.20 2.13%
  1. NTPC share price
  2. 351.40 -2.19%
  1. Infosys share price
  2. 1,420.55 0.41%
  1. Wipro share price
  2. 444.30 -0.96%
Business News/ Industry / Banking/  Paytm Payments Bank crisis: NHAI likely to extend the deadline for Fastag KYC completion
BackBack

Paytm Payments Bank crisis: NHAI likely to extend the deadline for Fastag KYC completion

NHAI's ‘One vehicle-one Fastag’ initiative is aimed at enhancing the efficiency of electronic toll collections

A worker fixes a FASTag sticker on the windscreen of a car at Vashi Toll Plaza on Sion Panvel Highway. (PTI)Premium
A worker fixes a FASTag sticker on the windscreen of a car at Vashi Toll Plaza on Sion Panvel Highway. (PTI)

Amid a regulatory crisis for the Paytm Payments Bank, the National Highways Authority of India (NHAI) is mulling over the extension of the deadline for completing Fastag KYC by March-end. Earlier, the nodal agency for highways set the February 29 deadline and asked the Fastag users to shift to the "One vehicle-one Fastag" system.

Here's how to update your Fastag KYC

“In view of the Paytm Payments Bank crisis, the FASTag users may be given more time to shift to one vehicle-one FASTag norm," a senior official of the NHAI told the Economic Times.

NHAI's "One vehicle-one Fastag" initiative is aimed at enhancing the efficiency of electronic toll collections. The initiative deters vehicle owners from utilizing a single FASTag for multiple vehicles or associating numerous FASTags with a specific vehicle.

The authority has asked the Fastag users to complete the ‘Know Your Customer’ (KYC) process for their Fastags as per the guidelines from the central bank or their Fastag will be subject to deactivation or blacklisting by financial institutions.

The move comes after several complaints that Fastag users have not completed their KYC, which is a violation of RBI norms. Moreover, some vehicle owners deliberately remove the Fastag from the windscreen of their vehicles, leading to unnecessary delays and traffic snarls at toll plazas.

RBI's crackdown against Paytm Payments Bank

The development came after the Reserve Bank of India (RBI) launched a crackdown against Paytm Payments Bank over irregularities in KYC norms, compliance issues related party transactions, etc. The central asked the company to cease further deposits, credit transactions, and top-ups on customer accounts after February 29. The RBI's deadline for business restrictions was later extended to March 15.

Under pressure from the regulatory bodies, Paytm founder and CEO Vijay Shekhar Sharma decided to step down from the board of Paytm Payments Bank. “The Company has been separately informed that Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition. PPBL has informed us that they will commence the process of appointing a new Chairman," the company said in an exchange filing.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 29 Feb 2024, 02:57 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,052.8-2.72%
₹1,509.4-0.98%
₹1,067.55-1.13%
₹128.21.05%
₹751.9-0.94%
Switch to the Mint app for fast and personalized news - Get App