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 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.
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.
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