+
Banks appeal against lowering of fees to run FASTag services
ROADS & HIGHWAYS

Banks appeal against lowering of fees to run FASTag services

Banks have asked the National Highways Authority of India (NHAI) to revert to the previous higher FASTag project management fee (PMF) to ensure its viability for the issuer bank.

In a set of recommendations sent by the Indian Banks’ Association (IBA) and also individually by several private and state-run banks to the Ministry of Road Transport and Highways (MoRTH) and NHAI, banks have asked the highways authority to revert to the earlier interchange PMF of 1.50%. The banks want the higher PMF to continue for at least two more years till 31 March 2024.

The government has introduced a mandatory FASTag programme nationally under which all toll collection on highways has been automated. Participating banks issue FASTags, and the toll is collected from an individual’s account whenever a vehicle crosses toll plazas on highways. More than 95% of highway toll is collected through FASTags.

In their representation, banks have reportedly said that a reduction of interchange fee from 1.5% to 1% will lead to 31% reduction in the income from the NETC FASTag business, affecting the viability of the project for the banks. NHAI had reduced PMF to 1% effective April 1, 2022.

See also:
NHAI directed to repair Kerala highways within a week
Land acquisition done for Mohali’s Airport Road-Kharar linkway


Banks have asked the National Highways Authority of India (NHAI) to revert to the previous higher FASTag project management fee (PMF) to ensure its viability for the issuer bank. In a set of recommendations sent by the Indian Banks’ Association (IBA) and also individually by several private and state-run banks to the Ministry of Road Transport and Highways (MoRTH) and NHAI, banks have asked the highways authority to revert to the earlier interchange PMF of 1.50%. The banks want the higher PMF to continue for at least two more years till 31 March 2024. The government has introduced a mandatory FASTag programme nationally under which all toll collection on highways has been automated. Participating banks issue FASTags, and the toll is collected from an individual’s account whenever a vehicle crosses toll plazas on highways. More than 95% of highway toll is collected through FASTags. In their representation, banks have reportedly said that a reduction of interchange fee from 1.5% to 1% will lead to 31% reduction in the income from the NETC FASTag business, affecting the viability of the project for the banks. NHAI had reduced PMF to 1% effective April 1, 2022.See also: NHAI directed to repair Kerala highways within a week Land acquisition done for Mohali’s Airport Road-Kharar linkway

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code