The Aryavarth Express
Agency (New Delhi): The Indian Government, in a move to modernize toll collection on its vast network of National Highways, has decided to implement a Global Navigation Satellite System (GNSS) based Electronic Toll Collection (ETC) system. This innovative approach will be piloted on selected sections of National Highways as an additional facility alongside the existing FAS Tag system.
A consultant has been appointed to provide advisory services for the implementation of this barrier-less, free-flow tolling technology. The initiative is part of the government’s broader strategy to integrate new technologies into the road transport sector.
In parallel, the National Highways Authority of India (NHAI) is focusing on ensuring that all FAS Tag users comply with the ‘Know Your Customer’ (KYC) process as mandated by the Reserve Bank of India (RBI) guidelines. FAS Tags with incomplete KYC are at risk of being blacklisted by banks after February 29, 2024. Despite NPCI’s directions to issuer banks for completing KYC of all FAS Tag users before March 1, 2023, total compliance has not yet been achieved. NHAI’s recent efforts are geared towards making the FAS Tag system fully KYC compliant to prevent inconvenience at toll plazas.
The “One Vehicle One FAS Tag” initiative is another significant step towards improving the efficiency of electronic toll collection. This initiative aims to deactivate or blacklist multiple FAS Tags issued on a single vehicle, reduce transaction delays, remove inactive or blacklisted FAS Tags, prevent unauthorized use of FAS Tags, and enhance the system’s overall reliability by minimizing fraudulent activities.
Furthermore, the RBI’s guidelines require all Prepaid Payment Instruments (PPIs), including FAS Tags, to be fully KYC compliant, with periodic updates varying based on the risk profile of customers.
Union Minister of Road Transport and Highways, Shri Nitin Gadkari, provided this information in a written reply to the Lok Sabha. The move towards a GNSS-based ETC system, alongside the strengthening of the FAS Tag system, represents a significant advancement in India’s road infrastructure, aiming to streamline toll collection processes and enhance the overall efficiency of road transportation.