NEW DELHI: The National Highways Authority of India (NHAI) has decided to discontinue the practice of routinely requiring banks to conduct Know Your Vehicle (KYV) verification for all cars issued FASTags, a statement by the ministry of road transport and highways said on Thursday.
The move to overhaul the KYV system is a significant step toward improving public convenience and eliminating post-activation harassment faced by highway users, the ministry said.
The changes would take effect on February 1.
Know Your Vehicle (KYV) is a verification mechanism designed to ensure FASTags are correctly mapped to vehicle registration numbers, preventing misuse and revenue leakage at toll plazas.
KYV will not be a routine requirement for existing vehicles with FASTags and verification will be triggered only if a complaint arises, such as cases of loose or duplicate tags, or mismatches between the vehicle number and the FASTag. In such instances, the issue will be flagged at the toll plaza, prompting corrective action.
Under the new provisions, NHAI has decided to stop the practice of allowing banks to issue FASTags first and later conduct the KYV.
All verifications related to vehicle ownership and identity must be completed before FASTag activation; thereafter, banks will not be allowed to seek additional documentation or initiate KYV checks, a ministry official said.
{{/usCountry}}All verifications related to vehicle ownership and identity must be completed before FASTag activation; thereafter, banks will not be allowed to seek additional documentation or initiate KYV checks, a ministry official said.
{{/usCountry}}Currently, 40 banks issue FASTags for cars.
The statement said NHAI has simultaneously strengthened pre-activation validation norms for issuer banks to ensure accuracy, compliance, and system integrity.
While the earlier provision allowing validation after activation has been discontinued, NHAI has decided that FASTag activation would be permitted only after the vehicle details are validated against the VAHAN database.
Where vehicle details are not available on VAHAN, Issuer Banks must validate details using the Registration Certificate (RC) before activation, with full accountability,” the statement said, underlining that this would only be done in exceptional cases. FASTags sold through online channels would also be activated only after complete validation by banks.
The revised rules, however, apply only to cars, not to commercial vehicles such as trucks and multi-axle vehicles. “This is limited to passenger cars. Commercial vehicles have different risk factors, and therefore remain outside this relaxation,” the official said.