Indian Highways Management Company (IHMCL), which is the division of NHAI that handles toll-related issues, has prohibited Paytm Payments Bank from issuing new FASTags following an assessment that revealed the company was not adhering to the guidelines outlined in the service level agreement (SLA).Additionally, the organisation is not permitted to take up any new toll plazas that are a part of the National Electronic Toll Collection.What all lead to barringThe Paytm Payments Bank was barred from issuing fresh FASTags on Friday due to non-compliance with the terms of its service level agreement (SLA) with the Indian Highways Management Company (IHMCL), the body overseeing the National Electronic Toll Collection (NETC) program. Meanwhile, a show cause notice has been sent to Paytm by IHMCL, where the company has been asked to reply on the matter. However, such action has not been taken for the first time regarding Fastag. Earlier, a decision was taken by the government regarding Fastag KYC.Here are some of the key reasons:Non-compliance with SLA:An audit by IHMCL revealed Paytm wasnt meeting the agreed-upon parameters in its SLA, like transaction settlement timelines, customer grievance redressal, and dispute resolution procedures. However, no details have been made public so far.Lack of cooperation:During the audit, IHMCL faced difficulties getting necessary information and cooperation from Paytm, raising concerns about transparency and responsiveness.Potential penalization:IHMCL has sought a response from Paytm explaining why it shouldnt be penalized for the non-compliance. Penalties could take various forms, including fines or temporary suspension of other NETC-related activities.Impact on Existing Users:This ban only affects the issuance of new FASTags through Paytm. Existing Paytm FASTag customers wont face any immediate disruption to their service.Meanwhile, IHMCL has indicated other entities could face similar action if they fail to meet the SLA requirements.Overall, the bar on Paytm issuing new FASTags highlights the importance of adhering to the NETC guidelines for smooth operation and ensuring a seamless cashless toll payment experience for users.
