All authorised payment systems and other instruments including non-bank PPIs, cards and UPI will now be permitted for linking with the FASTags to further boost National Electronic Toll Collection (NETC) system, RBI said in a notification on Monday. The users can now use it to make payments for different services such as vehicle toll, parking fee among others. The system currently allows linking of FASTags with bank accounts such as savings, current and prepaid. The Turn Around Time (TAT) for resolving failed transactions will also be applicable to the transactions carried out in the NETC system, the RBI added. “The transactions in the NETC system can be performed without any Additional Factor of Authentication (AFA) and/or pre-transaction notification/alert,” it also said. The respective requests from banks and non-banks will be facilitated by the NPCI.
FASTag will be mandatory for motorists using the national highways from January 15, 2020, after the government extended the new rule of mandatory FASTag for another month. The previous December 15, 2019 deadline was extended by 30 days owing to a shortage of tags in the market. The tag enables automatic deduction of toll charges from the prepaid or savings account linked to it by using radio frequency identification (RFID) technology, while the vehicle is in motion. Union Minister of Road Transport and Highways Nitin Gadkari last week said that the FASTag initiative rolled out on December 15 has picked up in a big way with more than one crore FASTags issued as on date
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Meanwhile, in a separate development, the RBI released a draft circular on limits on exposure to single and group borrowers or parties and large exposures and revision in priority sector lending targets for the urban cooperative banks (UCBs).
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Source: Financial Express