In a major move towards enhancing the efficiency of India’s Electronic Toll Collection (ETC) system, the National Highways Authority of India (NHAI) has introduced the ‘One Vehicle, One FASTag’ initiative. The initiative, aimed at curbing malpractices and ensuring a smoother traffic flow at toll plazas, comes into effect from January 31, 2024.
As part of this initiative, the NHAI is urging FASTag users to complete the Know Your Customer (KYC) process for their latest FASTags, aligning with guidelines set by the Reserve Bank of India (RBI). According to a press release from the Ministry of Road Transport & Highways, FASTags with valid balances but incomplete KYC will face deactivation or blacklisting by banks after the aforementioned date.
To avoid any inconvenience, users are strongly advised to complete KYC for their latest FASTag and adhere to the One Vehicle, One FASTag principle. It is also recommended to discard any previously issued FASTags through respective banks.
The move is designed to prevent malpractices such as using a single FASTag for multiple vehicles or associating multiple FASTags with a particular vehicle. This step aims to promote a more accountable and streamlined toll collection system, addressing recent reports of multiple FASTags being issued for a single vehicle and distribution of FASTags without proper KYC, in violation of RBI mandates.
Starting January 31, 2024, only the latest FASTag account will remain active, with previous tags being deactivated or blacklisted. The NHAI implemented this initiative in response to concerns over violations of RBI mandates, including instances of FASTags intentionally not being affixed to vehicle windshields, causing unnecessary delays at toll plazas.
The Ministry of Road Transport & Highways highlights that with a penetration rate of approximately 98 percent and over 8 crore users, FASTag has revolutionized the electronic toll collection system in India. The introduction of the One Vehicle, One FASTag initiative is expected to further improve toll operations’ efficiency. India has recently informed the World Bank about significant advancements in reducing waiting times at toll plazas and expediting export release times at land ports. The introduction of FASTag has played a pivotal role, reducing the average waiting time at toll plazas from 714 seconds to 47 seconds.
