NHAI has removed Paytm Payments Bank from the authorized Fastag providers. RBI extended the deadline. Users need to deactivate their old Fastag and get a new one from one of the 32 banks listed on NHAI’s website.

National Highway Authority of India (NHAI) has removed Paytm Payments Bank
Ltd (PPBL) from the list of authorised Fastag providers. The list now has 32
banks and the road toll authority, Indian Highways Management Company
(IHMCL), has advised users to buy Fastags from banks that are in the list.

Reserve Bank of India (RBI) has extended the deadline for Paytm Payments
Bank from February 29 to March 15.

Post that Fastags issued by Paytm will not work. Users who have money in
their Paytm accounts can get the same refunded in case they are not able to
use it by that date.

Why deactivating Paytm Fastag is important
As per the new One Vehicle, One Fastag initiative, Fastag can only be linked to
one vehicle or vice-versa. This means that to get a new Fastag, users need to
get their old Fastag deactivated. Users cannot get KYC done for new Fastag
unless their old Fastag is deactivated.

RBI’s FAQs on Paytm Payment Banks too clearly mentions the same. RBI has
clarified that Fastags are not interoperable, hence customers will need to close
PPBL accounts and seek refund. They will have to get a fresh Fastag from a
different bank.