Paytm Payments Bank has reportedly been excluded from the list of authorized banks recommended by India's road toll authority for purchasing Fastags, as per an ET report. The Indian Highways Management Company has advised highway users to procure Fastags from a selection of 32 authorized banks, with Paytm Payments Bank notably absent from the list.
This exclusion implies that nearly 20 million Paytm Fastags users will need to acquire new RFID (radio frequency identification) stickers. Among the authorized banks for FASTags are Airtel Payments Bank, Allahabad Bank, AU Small Finance Bank, Axis Bank, and others, totaling 32 banks.
The absence of Paytm Payments Bank from the list could pose challenges for its users, forcing them to transition to alternative banking services for Fastag transactions. This development comes at a critical time for Paytm, which is facing uncertainty following recent regulatory actions.
According to analysts at the Macquarie Group, Paytm's future is uncertain after regulatory constraints imposed by the central bank. The recent RBI curbs have led to a significant decline in Paytm's value, with the company losing approximately Rs 27,000 crore, equivalent to 57% of its total worth, in the past 11 days.
The analysts further highlighted that Paytm's business model and monetization efforts face substantial risks due to the potential exodus of customers following the RBI's restrictions. The central bank's ban on certain activities of the payments bank, which also encompasses Paytm wallet services, has cast a shadow over the company's operations and future prospects.
