National Highways Authority of India (NHAI) is likely to extend 'One Vehicle, One FASTag' initiative compliance deadline to March-end, in view of the problems being faced by Paytm FASTag users, a senior official said. 'One Vehicle, One FASTag' initiative was proposed to be implemented from March 1.
"In view of the Patym crisis, the FASTAg users may be given more time to shift to one vehicle-one FASTag norm," the official told news agency PTI.
What's the 'One Vehicle, One FASTag' initiative?
Under the initiative, NHAI is trying to do away with the use of single FASTag for multiple vehicles or linking multiple FASTags to a particular vehicle. It aims to enhance the efficiency of the electronic toll collection system and provide seamless movement at toll plazas.
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What's the problem with Paytm Payments Bank Ltd?
Earlier this month, the Reserve Bank of India (RBI) advised customers as well as merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15.
However, customers will be able to withdraw or utilise balance from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, without any restrictions, up to their available balance even beyond March 15. Also, as per RBI, customers can continue to use FASTags to pay toll up to the available balance.
{{/usCountry}}However, customers will be able to withdraw or utilise balance from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, without any restrictions, up to their available balance even beyond March 15. Also, as per RBI, customers can continue to use FASTags to pay toll up to the available balance.
{{/usCountry}}"However, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024," it had said.
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What is FASTag ?
FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly while the vehicle is in motion. It enables a customer to make the toll payments directly from the account which is linked to FASTag.
The method helps save fuel and time as a customer does not have to stop at the toll plaza.
With a penetration rate of around 98 per cent and over 8 crore users, FASTag has revolutionised the electronic toll collection system in the country, reported news agency PTI.