Paytm Payments Bank excluded from list of 32 banks for buying Fastags

Paytm Payments Bank has been excluded from a list of authorised banks recommended by India’s road toll authority for purchasing Fastags. The Indian Highways Management Company has advised highway users to obtain Fastags from a list of 32 authorised banks, none of which includes Paytm Payments Bank.

This decision implies that nearly 20 million Paytm Fastag users will need to acquire new RFID stickers. The authorised banks for Fastags encompass a range of institutions such as Airtel Payments Bank, Axis Bank, HDFC Bank, ICICI Bank, State Bank of India, and many others.

This development comes amidst challenges for Paytm, which is potentially grappling with its survival following recent regulatory actions by the central bank. According to analysts at the Macquarie Group, the recent RBI curbs pose a significant risk to Paytm’s business model and monetization efforts. As a result, Paytm has experienced a notable decline in value, losing approximately Rs 27,000 crore, or 57 per cent of its value, over the past 11 days.

The exclusion from the list of authorised banks for Fastags adds to the hurdles Paytm faces as it navigates through regulatory scrutiny and strives to retain its user base amidst evolving market dynamics.