The National Highways Authority of India (NHAI) has extended the ‘One Vehicle, One FASTag’ initiative compliance deadline to March-end, in view of the problems being faced by Paytm FASTag users.
This means FASTag users will have another month to comply with know-your-customer (KYC) norms. NHAI had earlier proposed to implement the ‘One Vehicle, One FASTag’ initiative from March 1 and had urged the FASTag users to complete the KYCs by February 29.
This is the second extension by NHAI to ensure no inconvenience is caused to Paytm FASTag users as they are already struggling to get new FASTags after the Reserve Bank of India said these will become non-functional after March 15.
“In view of the Patym crisis, the FASTAg users are being given more time to shift to one vehicle-one FASTag norm,” a government official said, adding we are extending the compliance deadline by one-month.
The ‘One Vehicle, One FASTag’ initiative aims to discourage the use of single FASTag for multiple vehicles or linking multiple FASTags to a particular vehicle. This is expected to enhance efficiency of the electronic toll collection system and provide seamless movement at toll plazas.
Earlier this month, the Reserve Bank of India (RBI) had advised customers as well as merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15.
The RBI also said withdrawal or utilisation of balances by PPBL customers from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, will be permitted without any restrictions, up to their available balance even beyond March 15.
FASTag has over eight crore users with a penetration rate of around 98%.
It is an electronic toll collection system in India, operated by the NHAI . It employs Radio Frequency Identification (RFID) technology for making toll payments directly from the prepaid or savings account linked to it or directly toll owner.
