Understanding the Impact of the 'One Vehicle, One FASTag' Rule: Everything You Need to Know

The National Highways Authority of India (NHAI) has introduced the "One Vehicle, One FASTag" program to discourage users from employing a single FASTag for multiple cars or attaching multiple FASTags to a single vehicle. This initiative aims to enhance the efficiency of the Electronic Toll Collection system and ensure seamless traffic flow at Toll Plazas.

Electronic Toll Collection: The Evolution of FASTag

• FASTag is an electronic toll collection system initiated by NHAI, employing Radio Frequency Identification (RFID) technology to streamline toll payments directly from linked prepaid or savings accounts.

•  FASTag's implementation has remarkably enhanced electronic toll collection across India, boasting a penetration rate of approximately 98% and over 8 crore users nationwide.

•  Electronic Toll Collection (ETC) through FASTag has exhibited consistent growth, evidenced by a significant surge in collections and transactions in recent years.

• In 2022, the total collection via FASTag at fee plazas, including State Highway fee plazas, reached Rs. 50,855 crore, showcasing a remarkable 46% increase from Rs. 34,778 crore in 2021.

• The number of FASTag transactions witnessed a substantial rise of nearly 48% from 2021 to 2022, underscoring the escalating popularity and efficacy of the system.

Ensuring Compliance: NHAI Urges FASTag Users to Update KYC Details

• NHAI encourages FASTag users to complete the 'Know Your Customer' (KYC) process, by RBI guidelines.

•  FASTags with sufficient balance but incomplete KYC will be subject to deactivation or blacklisting by banks after February 29, 2024, as per a statement from the Press Information Bureau (PIB).

• The initiative aims to ensure adherence to regulatory standards and bolster the security and efficiency of the FASTag system.

• Prompt updating of KYC details is advised to avoid disruptions in FASTag services.

From April 1st, the 'One Vehicle, One FASTag' rule will prevent individuals from using multiple FASTags for a single vehicle. NHAI's decision addresses concerns over misuse, such as multiple FASTags issued for one vehicle and violations of RBI's KYC regulations. Deliberate avoidance of FASTag placement on windshields has also caused toll plaza delays and inconvenience to other highway users.