Context:
The National Highways Authority of India (NHAI) has simplified the Know Your Vehicle (KYV) verification process for FASTag users, aiming to enhance transparency and prevent misuse in the electronic toll collection system.
Key Highlights:
About Know Your Vehicle (KYV):
• A verification system requiring FASTag users to submit:
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Vehicle images
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Registration Certificate (RC) details
• Ensures the FASTag is correctly linked to the registered vehicle.
• Implemented in 2024 to curb leakages and fraud in the FASTag ecosystem.
• Verification must be repeated every three years.
Institutional Framework:
• Initiative of NHAI.
• Notified by the National Payments Corporation of India (NPCI).
Objectives of KYV:
• ‘One Vehicle, One FASTag’ Rule:
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Each vehicle must have its own valid FASTag.
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Prevents duplication and multiple tags linked to a single vehicle.
• Prevent Fraud and Misuse:
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Reduces fake or mis-linked tags.
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Enhances authenticity of toll transactions.
• Ensure Smooth Toll Travel:
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Unverified KYV may lead to FASTag being blocked or flagged.
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Prevents delays and additional toll penalties.
What is FASTag?
• A device using Radio Frequency Identification (RFID) technology.
• Enables automatic toll payments while the vehicle is in motion.
• Linked to a prepaid account, savings account, or current account.
• Vehicle-specific and non-transferable.
• Can be purchased from National Electronic Toll Collection (NETC) Member Banks.
Operational Mechanism:
• RFID reader at toll plaza scans the FASTag.
• Toll amount is automatically deducted.
• Reduces cash handling and congestion at toll plazas.
Significance of KYV Reform:
• Strengthens India’s digital public infrastructure in transport.
• Enhances transparency in toll collection.
• Reduces revenue leakages.
• Improves commuter convenience and efficiency.
Relevant Prelims Points:
• KYV introduced: 2024.
• Mandatory verification every 3 years.
• Ensures ‘One Vehicle, One FASTag’.
• FASTag uses RFID technology.
• FASTag is vehicle-specific and non-transferable.
• NHAI – implementing authority.
• NPCI – notified KYV framework.
• NETC – National Electronic Toll Collection system.
Issue & Causes:
• Misuse of duplicate FASTags.
• Revenue leakages in toll collection.
• Mis-linking of vehicle registration data.
Benefits:
• Improved compliance.
• Reduced toll fraud.
• Faster toll operations.
Challenges:
• Digital literacy issues among users.
• Data privacy concerns.
• Compliance burden on vehicle owners.
Relevant Mains Points:
Governance Dimension:
• Example of Digital India initiatives improving public service delivery.
• Enhances accountability and data integration in infrastructure governance.
Infrastructure & Economy:
• Efficient toll collection improves logistics efficiency.
• Supports India’s push toward ease of doing business.
Technological Aspect:
• RFID-based digital tolling aligns with global smart transport systems.
• Integration with digital payment ecosystem strengthens fintech adoption.
Policy Relevance:
• Aligns with goals of cashless economy.
• Complements infrastructure expansion under Bharatmala Pariyojana.
Way Forward:
• Improve user awareness campaigns.
• Strengthen cybersecurity safeguards.
• Integrate KYV with broader VAHAN database for seamless verification.
• Move towards barrier-free tolling (GPS-based tolling in future).
UPSC Relevance (GS-wise):
• GS Paper II: Governance, digital public infrastructure.
• GS Paper III: Infrastructure, logistics, digital economy.
• Prelims: FASTag technology (RFID), NHAI, NPCI, NETC, KYV provisions.
• Essay: Role of digital governance in improving infrastructure efficiency.