The Indian Highways Management Company Ltd (IHMCL) has barred Paytm Payments Bank from issuing fresh FASTags after finding that the fintech was not following the prescribed parameters of service standards for the operation of services, the TOI reported.
IHMCL, an arm of the National Highways Authority of India, sent a letter to the fintech asking why penalties shouldn't be imposed for non-compliance. Other entities are also under scrutiny, and penalties may be imposed, the report added.
Reserve Bank of India approved the Paytm Payment Bank to operate as a Bharat Bill Payment Operating Unit (BBPOU) a year ago.
BBPOU is allowed to facilitate bill payment services for various utilities like electricity, phone, gas, and water, as well as for loans, FASTag recharge, credit card bills, education fees, and municipal taxes.
Paytm Payments Bank faced scrutiny last year and was fined Rs 5.39 crore by the Reserve Bank of India (RBI). The fine was imposed due to several instances of non-compliance with RBI guidelines, including lapses in Know Your Customer (KYC) procedures, cybersecurity measures, and other regulatory requirements.
Further, Paytm has crossed 100 million active customers on its platform, the company informed. It reported strong revenue growth in Q3FY24. The revenue of the company stood at 2850 crore, registering a growth of 38 per cent Year on Year (YoY), driven by accelerated GMV growth, higher device addition, and growth of the financial services business as per its Q3FY24 results published on January 19.