Relief For FASTag Users, Road Transport Ministry Proposes Scrapping Of KYC To RBI
FASTags or FASTags are set to become a norm across NHAI toll gates in the country. A FASTag will be an RFID Radio Frequency Identification tag to be affixed on the windshield of a vehicle letting the vehicle pass through a toll barrier without having to stop for the payment. The corresponding amount will then be deducted from the digital wallet linked to the account. At present there is a need for KYC within a year of obtaining ones FASTAG.
Smart tags or FASTags are set to become a norm across NHAI toll gates in the country. Those who have already got one for their vehicle know that a know your customer (KYC) has to be done within a year of FASTag issuance. Now the road transport highways ministry aims to do away with this practice.
The ministry has reportedly approached the Reserve Bank of India for the same. The idea is to make the issuance of these FASTags easier and possible even at the toll gates. Since the payment for these FASTags can only be done through a digital wallet like PayTm, the KYC for the accounts is already in place and within a closed loop payment system doing the KYC again turns out to be just a repetitive process.
A ministry official confirmed this, ¡°Banks have already done KYC for their bank accounts or credit cards. Moreover, since this is a closed loop payment system, the relaxation should be possible.¡±
For those unaware, a FASTag will be an RFID (Radio Frequency Identification) tag to be affixed on the windshield of a vehicle, letting the vehicle pass through a toll barrier without having to stop for the payment. The corresponding amount will then be deducted from the digital wallet linked to the account. To know more about the FASTag, click here.
Current practice
At present, there is a need for KYC within a year of obtaining one¡¯s FASTag. The process is carried out by banking correspondents and as per a report, ¡°banks spend at least Rs 300 on each case.¡±
Within a closed loop system, this turns out to be just an added expense. Hence highways minister Nitin Gadkari decided to address the issue to RBI governor Shaktikanta Das last week as per the report. In an ideal scenario, the system will work somewhat like the Delhi Metro cards.
An added benefit
The proposed redressal of the KYC for FASTags will have an added benefit too. With the government propelling the use of FASTags, double the toll fee for vehicles without these FASTags has been proposed. Gadkari, on the other hand, wants such vehicles to procure the FASTags from the toll booths. Doing away with the KYC process will help fasten such issuance of FASTags at the tolls.
The complete rollout of FASTags will commence from December 15. To date, the government has sold more than 80 lakh FASTags across the country. In case you are yet to get one for your vehicle, here is how to do it.
