Fastags have become a tool, in the Indian sector since they were made mandatory for all four-wheelers nationwide a few years back. To ensure the use of Fastags the government has introduced regulations. The National Highways Authority of India (NHAI) recently announced that banks would deactivate Fastags with KYC but valid balances after January 31, 2024. This move emphasizes the adoption of a "One car, One Fastag" policy stating that each vehicle should have one Fastag registered specifically for that car. Originally set for the end of January the deadline was extended to February 29. Then to March 31 before becoming effective on April 1. This shift aims to streamline toll collection operations improve efficiency and provide journeys for users of the National Highway network. The implementation of this policy was necessary due, to instances where Fastags were issued without following KYC guidelines, which violated RBI regulations.
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The recent policy changes include;
Each vehicle is now allowed to have one Fastag linked to a vehicle registration number.
Users are required to complete the 'Know Your Customer' (KYC) process, for each Fastag, linked to their name ensuring that each Fastag corresponds to a RC number.
Individuals with Fastags will not be able to add funds to their accounts once their Fastags are marked with a "Low Balance" status.
They can still use the existing Fastag balance for toll transactions until they are blocked.
Each Fastag is linked to the vehicle's registration card and any attempt at duplication or mismatching will result in blacklisting by the issuing bank.
How Fastags Work?
Fastags operates as a toll collection system in India overseen by the NHAI. Using Radio Frequency Identification (RFID) technology Fastags enable toll payments from the connected savings account or directly from the toll operator. With an adoption rate of around 98% and more than 80 million users, Fastags has significantly modernized electronic toll collection, in the country.
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