NHAI has more bad news for Paytm: Company removed from the list of authorised banks for FASTag service

In a further blow to Paytm, the National Highway Authority of India (

NHAI

) has removed

Paytm

Payments Bank Ltd (PPBL) from its list of 30 authorised banks for

FASTag

service. The road toll authority Indian Highways Management Company (IHMCL) has advised highway users to buy Fastags from a list of 32 authorised banks which excludes Paytm Payments Bank.
What this means for users with Paytm FASTag
This means that the estimated 20-million-plus

Paytm Fastag users

need to get new RFID (radio frequency identification) stickers. Paytm Fastags will become inoperative after February 29. India reportedly has over 70 million Fastag users and Paytm Payments Bank claims it has 30% market share, which means more than 20 million users.
The move is said to be aimed at ensuring that millions of Paytm Fastag users do not face any hassle while using toll roads after the cut-off date, people aware of the matter told Economic Times. The government is apprehensive of the inconvenience that will be caused to Paytm users, they said.

Banks in the NHAI FASTag list
The banks in the NHAI's FasTag list include Fino Payments Bank, HDFC Bank, ICICI Bank, IDBI bank, IDFC First Bank, Indian bank, Induslnd bank, J&K Bank, Karnataka bank, Karur Vysya bank, Kotak Mahindra Bank, Nagpur Nagarik Sahakari bank, Punjab National Bank, Sarswat bank, State Bank of India, Thrissur District Cooperative Bank, UCO Bank, Union bank of India and Yes Bank.