Why is it in the News?

The National Highways Authority of India (NHAI) announced on Monday (January 15) that FASTags with valid balances but incomplete KYC will be deactivated by banks after January 31, 2024.

What is the ‘One Vehicle, One FASTag’ Program?

• In a bid to enhance the efficiency of the electronic toll collection system and facilitate seamless movement at toll plazas, NHAI has initiated the ‘One Vehicle, One FASTag’ program, discouraging the use of a single FASTag for multiple vehicles or linking multiple FASTags to a particular vehicle.
• NHAI encourages FASTag users to complete the ‘Know Your Customer’ (KYC) process for their latest FASTag, aligning with RBI guidelines.
  • To prevent inconvenience, users must ensure KYC completion for their latest FASTag and discard all previously issued FASTags through their respective banks.
  • The initiative aims to deactivate or blacklist previous tags after January 31, 2024.

• Ensuring seamless and comfortable journeys:  The ‘One Vehicle, One FASTag’ initiative, coupled with the high penetration rate of FASTag at around 98% and over 8 crore users, is poised to streamline toll operations, ensuring efficient and comfortable journeys on national highways.

About FASTags:

• FASTag serves as an electronic toll collection system in India, administered by the NHAI.
  • Utilising Radio Frequency Identification (RFID) technology, it facilitates toll payments directly from the linked prepaid or savings account or directly from the toll owner.
• FASTag utilizes Radio Frequency Identification (RFID) technology, allowing seamless toll payments while the vehicle is in motion.
• Windscreen Affixation: FASTag is affixed on the vehicle's windscreen, providing a hassle-free experience for customers to drive through toll plazas without the need to stop for payments.
• Automatic Deduction: Toll fares are automatically deducted from the linked account of the customer, ensuring a swift and cashless transaction.
• Vehicle Specific: Once affixed to a vehicle, FASTag becomes vehicle-specific, preventing transferability to another vehicle.
• Purchase from NETC Member Banks: FASTag can be conveniently purchased from any of the National Electronic Toll Collection (NETC) Member Banks.
• Prepaid Account Recharge: In the case of linking FASTag to a prepaid account, customers need to recharge or top-up the tag based on their usage.