NEW DELHI: Indian Highways Management Company (
IHMCL
), the arm of NHAI dealing with toll related matters, has barred
Paytm Payments Bank
from issuing fresh FASTags after an audit by the agency found that the entity was not complying with the parameters prescribed in the service level agreement (SLA).
The entity has also been banned from taking up any new toll plazas that are part of the
National Electronic Toll Collection
, which covers the entire NH network.
In a letter to the bank last Friday, IHMCL has also sought a response on why Paytm Payments Bank should not be penalised for non-compliance. The decision will, however, not impact the bank's existing FASTag customers. Paytm is among the largest issuers of the electronic tolling tool.
Paytm Payments Bank did not respond to queries from TOI sent on Thursday and sought more time to reply.
NHAI officials told TOI that some other entities are under the radar and could face similar action in the coming weeks. The move comes after
Reserve Bank of India
had put a freeze on opening fresh savings bank accounts.
IHMCL pointed out that the decision to impose curbs followed an audit ordered by it in the wake of a large number of customer complaints.
"During the audit, various complaints were received from the auditor that the bank did not cooperate with them in carrying out the audit," the agency said, while describing this as "a matter of concern".
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