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IHMCL, which operates beneath the Nationwide Highways Authority of India (NHAI), had in its letter dated January 19, 2024, barred Paytm Funds Financial institution from issuing contemporary FASTags and taking over new toll plazas because of non-compliance with obligatory know your buyer (KYC) norms.
IHMCL additionally discovered that Paytm Funds Financial institution had not even up to date car chassis numbers and registration numbers and issued a number of FASTags for a similar automotive or vice-versa. “Paytm Funds Financial institution has defended itself saying it complies with all of the norms. Nonetheless, the auditors are scrutinising the responses of Paytm following which the federal government will determine on the longer term plan of action,” mentioned one of many individuals cited above.
A spokesperson for Paytm Funds Financial institution, nonetheless, mentioned IHMCL has been fully happy with the progress made on the observations within the audit report of its FASTag providers. “We at the moment maintain a major market share in FASTag providers and are actively engaged on a decision with NHAI. We’re hopeful that the hundreds of thousands of customers counting on FASTag for his or her each day commute won’t be impacted,” the spokesperson mentioned in response to ET’s queries.
A second individual cited above mentioned NHAI is mulling over methods to assist Paytm FASTag customers emigrate to different banks.
In the meantime, the roads ministry continues to watch the state of affairs, one other individual mentioned.
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