NHAI Likely to Extend ‘One Vehicle, One FASTag’ Initiative Compliance Deadline

The National Highways Authority of India (NHAI) is considering extending the deadline for compliance with the ‘One Vehicle, One FASTag’ initiative to the end of March, according to a senior official. This decision comes in light of the challenges faced by Paytm FASTag users, who are experiencing difficulties due to the ongoing crisis involving Paytm Payments Bank Ltd.

The ‘One Vehicle, One FASTag’ initiative, originally slated for implementation on March 1, aims to eliminate the practice of using a single FASTag for multiple vehicles or linking multiple FASTags to a single vehicle. The objective is to enhance the efficiency of electronic toll collection systems and facilitate seamless movement at toll plazas.

The problem arose with Paytm Payments Bank Ltd earlier this month when the Reserve Bank of India (RBI) advised customers and merchants to transfer their accounts to other banks by March 15. Although customers will still be able to withdraw or utilize balances from their Paytm Payments Bank accounts, including FASTags, beyond March 15, no further funding or top-ups will be permitted in FASTags issued by Paytm Payments Bank after this date.

FASTag, which utilizes Radio Frequency Identification (RFID) technology, enables vehicles to make toll payments directly while in motion. This system significantly reduces fuel consumption and travel time by eliminating the need for vehicles to stop at toll plazas.

With a penetration rate of approximately 98 percent and over 8 crore users, FASTag has transformed electronic toll collection systems across the country. However, in light of the challenges faced by Paytm FASTag users, NHAI is likely to extend the compliance deadline for the ‘One Vehicle, One FASTag’ initiative to the end of March, providing users with additional time to transition to the new system.