New Delhi: The National Highways Authority of India (NHAI) is poised to prolong the compliance deadline for the ‘One Vehicle, One FASTag’ initiative until the end of March, according to a senior official. This extension comes in light of the challenges faced by users of Paytm FASTags.
Originally scheduled for implementation on March 1, the initiative aims to streamline electronic toll collection and deter the practice of using a single FASTag for multiple vehicles or linking multiple FASTags to a single vehicle.
Earlier this month, the Reserve Bank of India (RBI) advised both customers and merchants of Paytm Payments Bank Ltd (PPBL) to migrate their accounts to other banks by March 15. The RBI also announced that PPBL customers can withdraw or utilise their balances without restrictions, including funds in their FASTags, even beyond March 15.
Regarding FASTags, the RBI stated in its FAQs that users can continue using them for toll payments up to their available balance. However, it clarified that no further funding or top-ups will be permitted in FASTags issued by Paytm Payments Bank after March 15, 2024.
FASTag, with a penetration rate of approximately 98 percent and over 80 million users, has significantly transformed the electronic toll collection system in India. Operating on Radio Frequency Identification (RFID) technology, FASTag enables toll payments directly from linked prepaid or savings accounts, thereby facilitating seamless movement at toll plazas.
