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NHAI’s ‘One Vehicle, One FASTag’ Initiative To Streamline Toll Collection


In a significant move to enhance the efficiency of the Electronic Toll Collection (ETC) system and streamline traffic at Toll Plazas, the National Highways Authority of India (NHAI) has introduced the ‘One Vehicle, One FASTag’ initiative. This strategic measure aims to curb the prevalent practice of using a single FASTag for multiple vehicles or linking multiple FASTags to a specific vehicle.

Addressing the Need for Individual FASTags

The ‘One Vehicle, One FASTag’ initiative is a proactive step taken by NHAI to address concerns related to the misuse of FASTags. Reports have surfaced indicating instances where multiple FASTags were issued for a single vehicle, leading to misuse and evasion of toll charges. This initiative seeks to promote a one-to-one correspondence between vehicles and FASTags, ensuring transparency and accountability in toll collection.

Urgent Need for KYC Compliance

NHAI is actively promoting the completion of the ‘Know Your Customer’ (KYC) process for the latest FASTag. Users are urged to update their KYC details in adherence to Reserve Bank of India (RBI) guidelines. FASTags with valid balances but incomplete KYC details will face deactivation or blacklisting by banks after January 31, 2024. To avoid any inconvenience, users must ensure the timely completion of KYC for their latest FASTag.

Sunset for Previous FASTags

Compliance with the ‘One Vehicle, One FASTag’ principle is paramount. Users are required to discard all previously issued FASTags through their respective banks. After January 31, 2024, only the latest FASTag account will remain active, as previous tags are slated for deactivation or blacklisting. This measure ensures that the ETC system operates seamlessly with the most up-to-date information and minimizes the chances of misuse.

NHAI’s Response to Recent Challenges

This initiative by NHAI comes in response to recent reports highlighting the issuance of multiple FASTags for a single vehicle and instances of FASTags being distributed without completing the mandatory KYC, thereby violating RBI mandates. Additionally, the deliberate non-fixing of FASTags on vehicle windshields has resulted in unnecessary delays at toll plazas, causing inconvenience to fellow National Highway users.

Transformative Impact of FASTag

With a penetration rate of approximately 98 percent and a user base exceeding 8 crores, FASTag has transformed the Electronic Toll Collection system in the country. The implementation of the ‘One Vehicle, One FASTag’ initiative is poised to enhance toll operations’ efficiency, ensuring seamless and comfortable journeys for National Highway users. NHAI encourages all stakeholders to embrace this initiative as a collective step towards a more streamlined and accountable toll collection system.

Important Questions Related to Exams

1. What is the primary objective of NHAI’s ‘One Vehicle, One FASTag’ initiative?

2. What action will banks take for FASTags with valid balances but incomplete KYC after January 31, 2024?

3. What is the penetration rate of FASTag in India approximately?

Kindly share your responses in the comment section.


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