Government has appointed a consultant to provide advisory services on implementation of new technologies like Global Navigation Satellite System (GNSS) based barrier less free flow tolling.

It has been decided to Initially implement GNSS based Electronic Toll Collection (ETC) System at selected sections of National Highways on pilot basis as an added facility along with FAS Tag.

National Highways Authority of India (NHAI) is encouraging FAS Tag users with incomplete KYC to complete their ‘Know Your Customer’ (KYC) process as per RBI Guidelines.

FAS Tags with incomplete KYC are liable to be blacklisted by Banks beyond 29.02.24. National Payments Corporation of India (NPCI) had earlier issued directions to all issuer banks to complete KYC of all FAS Tag  users before 01.03.23 however, the 100% compliance was not achieved. NHAI’s recent initiative aims to make the FAS Tag system 100% KYC compliant in order to avoid inconvenience to road users at fee Plazas. Under the “One Vehicle One FAS Tag” NHAI aims to deactivate/blacklist multiple FAS Tags issued on a single Vehicle.

Instances have been reported when FAS Tag issued to a different vehicle are carried in another vehicle(s) without fixing it on the windscreen of the vehicle. This also results in deduction of User Fee even if that vehicle has not crossed fee Plaza. With One Vehicle One FAS Tag initiative, such misuse of FAS Tag will be minimized.

One Vehicle One FAS Tag initiative aims to increase the efficiency and strengthen the Electronic Toll Collection by:

1. Reducing transaction processing delays
2. Removing large volume of inactive/blacklisted FAS Tag from the system
3. Prevention of unauthorized handling of FAS Tags which are not affixed to vehicle windscreen
4. Enhancing overall reliability of the system by minimizing chances of

Misuse of other vehicle’s FAS Tag and other fraudulent activities

5. Creating unique identifier of a vehicle for Tolling purpose.

The guidelines as issued by RBI through Master Direction - Know Your Customer (KYC) Direction, 2016 (Updated as on January 04, 2024) RBI/DBR/2015-16/18 Master Direction DBR.AML.BC.No.81/14.01.001/2015-16 is applicable to all Prepaid Payment Instruments (PPI) including FAS Tag customers.

The Guidelines requires KYC of all PPI like FAS Tag to be fully KYC compliant. The Guidelines also require periodic updation of KYC which ranges from at least once in every two years for high-risk customers, once in every eight years for medium risk customers and once in every ten years for low-risk customers from the date of opening of the account / last KY C updation.

NHAI, through the recent initiative aims to make the FAS Tag system 100% KYC compliant in order to avoid inconvenience to road users at fee Plazas.

This information was given by the Union Minister of Road Transport and Highways, Shri Nitin Gadkari in a written reply to the Lok Sabha today.

*****

MJPS/NSK

(Release ID: 2004011) Visitor Counter : 1515