Discover the latest development in the Fastag saga amidst the Paytm Payments Bank crisis! NHAI is considering extending the KYC deadline, offering relief to Fastag users. Get all the exclusive details and insights into this breaking story now!
Regulatory Flexibility for Fastag KYC Deadline
Amid the ongoing regulatory turbulence surrounding Paytm Payments Bank, the National Highways Authority of India (NHAI) is contemplating extending the deadline for completing Fastag KYC until the end of March. Initially, the NHAI had set February 29 as the deadline, urging Fastag users to transition to the “One vehicle-one Fastag” system.
A senior official of the Highways Authority revealed to the Economic Times, “Considering the situation with the fintech giant, Fastag users may receive additional time to adhere to the one vehicle-one Fastag requirement.”
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Enhancing Toll Collection Efficiency
NHAI’s “One vehicle-one Fastag” initiative aims to streamline electronic toll collections by discouraging the use of a single tag for multiple vehicles or linking numerous tags to a single vehicle. This move is geared towards boosting efficiency at toll plazas.
The authority has emphasized the importance of tag users completing the ‘Know Your Customer’ (KYC) process for their tag by guidelines from the central bank. Failure to comply may result in the deactivation or blacklisting of tags by financial institutions.
The decision follows numerous complaints regarding non-compliance with KYC requirements, a violation of Reserve Bank of India (RBI) norms. Additionally, some vehicle owners have been found to remove the tags from their vehicles’ windshields deliberately, causing unnecessary delays and traffic congestion at toll plazas.
RBI’s Actions Against Paytm Payments Bank
The regulatory intervention comes in the wake of the Reserve Bank of India’s (RBI) crackdown on PPBL for irregularities in KYC norms and compliance issues related to party transactions. The central bank directed the company to halt further deposits, credit transactions, and top-ups on customer accounts after February 29. This deadline was later extended to March 15.
In response to regulatory pressure, founder and CEO Vijay Shekhar Sharma opted to step down from the board of PPBL. The company announced, “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,” in an exchange filing.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and NHAI have contributed to the above report
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