Introduction- Revamping the Toll System

  • The National Highways Authority of India (NHAI) has brought forward 'One Vehicle, One FASTag' Scheme to amplify the functioning of the Electronic Toll Collection (ETC) system.
  • The prime objective is to curb the practices of applying one FASTag to many vehicles or using multiple FASTags on one vehicle.

Unraveling the 'One Vehicle, One FASTag' Initiative

  • The 'One Vehicle, One FASTag' initiative aims to ensure a direct correspondence among vehicles and FASTags.
  • The measure has been taken in response to noted misuses where a single vehicle carried multiple FASTags. This has been leading to evasion of toll taxes.
  • Users with valid balances but incomplete 'Know Your Customer' (KYC) compliance risk the blacklisting of their FASTags post-31st January 2024.

Reiterating the Importance of KYC Compliance

  • In compliance with the Reserve Bank of India's (RBI) guidelines, NHAI is emphasising the necessity of completing the KYC process for each FASTag.
  • The RBI guideline is in line with maintaining transparency and ensuring accountability in the toll collection process.

Triumph over Prior Challenges

  • NHAI's latest initiative targets the issues brought forward by the distribution of FASTags without mandatory KYC compliance as per RBI rules.
  • The program also addresses concerns regarding delays at toll plazas because of intentional non-adherence to fixing of FASTags.

Impact of 'One Vehicle, One FASTag' Initiative

  • With more than eight crore users and nearly 98% penetration rate, FASTag has significantly modernised India's Electronic Toll Collection system.
  • The 'One Vehicle, One FASTag' initiative is anticipated to boost the overall efficiency of toll operations, ensuring a smoother journey for National Highway users.

Out with the Old: Phasing out Previous FASTags

  • To ensure the proper implementation of 'One Vehicle, One FASTag' initiative, users are to discard all previously issued FASTags.
  • Post 31st January 2024, only the FASTag accounts that are in sync with the new initiative will remain active, older tags facing deactivation or blacklisting.

The NHAI's latest initiative serves to enhance the transparency and efficiency of toll operations, simplifying travel for road users across the nation. Staying informed about such government reforms and initiatives is crucial for aspirants preparing for government exams and those seeking to remain updated on current affairs.