Paytm Payments Bank on Monday rolled out Paytm FASTag to enable electronic toll fee collection on highways across the country, in line with the government's move to make FASTag mandatory on every new vehicle sold from December 1.
The Paytm FASTag - which is a simple and reusable tag based on radio-frequency identification technology (RFID) that can be placed on a vehicle's windscreen - will allow commuters to pass through 380 toll plazas across India covering 55,000 kms without having to stop. Each tag is linked to a registered Paytm account to facilitate instant automatic deduction of toll charges.
Paytm Payments Bank is currently working with leading car and commercial vehicle manufacturers and dealers, including Maruti, Hyundai, Tata, Mercedes, Renault, BMW, Volkswagen, Volvo, among others, to make Paytm FASTag available for customers purchasing new vehicles across India.
In addition, old vehicle owners can buy FASTag online on Paytm app. Customers using Paytm FASTag will get 7.5 percent cashback on every toll transaction. The bank expects to cover over 10 lakh vehicles using Paytm FASTag by the end of this financial year.
"Cash payments at toll plazas result in precious man hours and fuel being unnecesarily spent, as attendants and motorists are left grappling with the hassles of dealing in exact change. The Paytm FASTag will facilitate non-stop movement of vehicles through toll plazas and bring the benefits of cashless payments to every toll in India. Besides offering convenience to commuters, this will also improve transparency and overall efficiency of the country's toll network," said Renu Satti, MD and CEO - Paytm Payments Bank.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)