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The National Payments Corporation of India (NPCI) announced in a June 2024 statement that the deadline for finishing Know Your Customer (KYC) under the new FASTag requirements is October 31, 2024. FASTag service providers need to complete KYC by this date for each FASTag that was issued three to five years ago.
FASTag
It is an innovative pre-paid car tag service that employs technology to get rid of traffic jams at toll booths all throughout India. When the FASTag becomes operational, it is attached to the windshield of the car and its data is passively read by antennae at the toll booth, deducting the appropriate amount from the user’s bank account.
FASTag, which has over eight crore users and a penetration rate of almost 98%, has completely changed the nation’s electronic toll collection system. For toll payments, it uses Radio Frequency Identification (RFID) technology, which takes payments straight out of the associated account.
FASTags are available for purchase at toll booths, Indian Oil, Hindustan Petroleum, Bharat Petroleum gas pumps, banks, PAYTM, and Amazon. Benefits of FASTag use are numerous. It is convenient and cashless, moves traffic continuously, saves paper, lessens pollution, and eases traffic congestion.
All tags issued from 1st August 2024 will comply with the following mandatory requirements, as per the NPCI notification.
- Each tag that is issued has a distinct VRN and chassis number associated with it. When purchasing a new car when the VRN is not accessible, the chassis number is required. Issuers are required to make sure that the VRN is updated every ninety-day period. Should they fail to do so, they will be required to transfer those tags to the Hotlist. The issuer will close these tags with a notice of non-compliance if, even after 30 days of hotlisting the tag, there is no VRN update.
- The Issuer has validated the data, or tag details are confirmed with the VAHAN database.
- Every tag that is issued is linked to a clear picture of the car (front with the tag attached, and side with the axle and the tag clearly visible).
- A mobile number is associated with every tag. Issuers should make sure the cellphone number is linked to the proper KYC.
Important things to know
- KYC must be carried out in accordance with legal requirements.
- Unregistered tags will not allow transactions. Issuers will implement this procedure gradually. As per this advice, first enable the Re-KYV process for tags that are in the hotlisted category and for consumers who do not have the necessary papers.
- Three years should pass between Re-KYV procedures. However, Issuers must carry out the re-KYV process if tags are on the hotlist and inadequacies in documentation or KYV details are found.
- Issuers are responsible for making sure the proper systems are in place to recognize and replace damaged or defective tags.
- The issuer will, to the best of their ability, replace any issued tags that are older than five years. Issuers must track down instances of manual entries made against their issued tags and make sure that these entries aren’t the result of broken or defective tags. Issuers are required to change such tags immediately.
Re- KYV (Know Your Vehicle)
- Issuers are required to make sure that the VRN is updated every ninety-day period. Should they fail to do so, they will be required to transfer those tags to the Hotlist. The issuer will close these tags with a notice of non-compliance if, even after 30 days of hotlisting the tag, there is no VRN update.
- Every tag must be validated using the VAHAN database, or the issuer must validate the tags.
- Every issued tag is linked to a clear picture of the car (front with tag attached, side with axle), as well as a clear picture of the issued tag.
- Every tag has a mobile number attached to it. Issuers should make sure the cellphone number is linked to the proper KYC.
- October 31, 2024, is the target date for the aforementioned compliance. Any tags that the issuer issues that don’t adhere to the first point above will be placed on a blacklist, and no transactions will be allowed on them.
