Indian Highways Management Company, a subsidiary of the National Highways Authority of India (NHAI), has decided to extend the deadline for Know Your Customer (KYC) compliance for FASTags by an additional month, as revealed by a senior government official on Wednesday.
Earlier, on January 15, NHAI had announced that FASTags with valid balances but incomplete KYC would be deactivated by banks after January 31, 2024. However, due to the closure of only 7 lakh out of 1.27 crore multiple FASTags, the official, speaking on the condition of anonymity, disclosed that the deadline is being extended by one more month.
In an effort to optimize the electronic toll collection system and facilitate smooth traffic flow at toll plazas, NHAI had introduced the ‘One Vehicle, One FASTag’ initiative. This initiative aims to discourage the practice of using a single FASTag for multiple vehicles or associating multiple FASTags with a specific vehicle. NHAI also emphasized the importance of completing the ‘Know Your Customer’ (KYC) process for FASTag users, aligning with RBI guidelines.
With an impressive penetration rate of approximately 98 percent and a user base exceeding 8 crore, FASTag has significantly transformed the electronic toll collection landscape in India. FASTag utilizes Radio Frequency Identification (RFID) technology, allowing toll payments to be made directly from the linked prepaid or savings account or directly to the toll owner.
