The Reserve Bank of India has said that now customers can use non-bank prepaid payment instruments (PPIs), cards and Unified Payments Interface (UPI) to link FASTags. The move is expected to boost the National Electronic Toll Collection (NETC).
In its notification RBI has said, “In order to further broad base this system by allowing more payment choices for the customers, as well as for fostering competition among the system participants, all authorised payment systems and instruments non-bank PPIs, cards and Unified Payments Interface (UPI) shall from now be permitted for linking with the FASTags, which can be used for various types of payments (vehicle toll, parking fee, etc).”
It added that the turnaround time (TAT) for resolving failed transactions will also be applicable to the non-bank transactions carried out in the NETC system. “The transactions in the NETC system can be performed without any Additional Factor of Authentication (AFA) and/or pre-transaction notification/alert,” RBI added.
The respective requests from banks and non-banks will be facilitated by the NPCI.
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 10 million FASTags issued as on date.
Source: Business Standard
