Paytm Payments Bank stopped from issuing new FASTags, know why

According to TOI report, Paytm Payments Bank has been barred from issuing new FASTags. Indian Highway Management Company Limited (IHMCL), the NHAI arm that handles toll-related matters, found that the entity was not complying with the parameters laid down in the service-level agreement (SLA).

According to TOI report, Paytm has been restricted from taking over any new toll plazas that will be part of the national electronic toll collection covering the entire national highway network.

IHMCL, in a letter to the bank last Friday, has also sought a response from Paytm Payments Bank as to why the company should not be penalized for non-compliance.

According to reports quoting NHAI officials, after Paytm, other entities are also on the radar and may face similar action.