**Summary:**
This Reserve Bank of India (RBI) directive, DPSS.CO.PD No.1227/02.31.001/2019-20, dated December 30, 2019, broadens the scope of the National Electronic Toll Collection (NETC) system by allowing all authorized payment systems and instruments, including non-bank Prepaid Payment Instruments (PPIs), cards, and Unified Payments Interface (UPI), to be linked with FASTags. This expansion aims to provide customers with more payment choices and foster competition among system participants for various payments such as vehicle toll and parking fees. The directive also specifies that the Turn Around Time (TAT) for resolving failed transactions, as outlined in circular DPSS.CO.PD No.629/02.01.014/2019-20 dated September 20, 2019, will apply to NETC system transactions. Furthermore, transactions within the NETC system can be performed without Additional Factor of Authentication (AFA) or pre-transaction notification alerts. The National Payments Corporation of India (NPCI) is tasked with facilitating requests from banks and non-banks related to this directive. This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007. For inquiries, P. Vasudevan, Chief General Manager, Department of Payment and Settlement Systems, Central Office, Reserve Bank of India, Mumbai, can be contacted at Tel: 91-22-2264 4995, Fax: 91-22-22691557, or via email at cgmdpsscorbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the issuing authority of the notification.
National Electronic Toll Collection (NETC): A system in India for electronic toll collection.
FASTags: Tags linked to bank accounts or other payment methods used for electronic toll payments in the NETC system.
Unified Payments Interface (UPI): An instant real-time payment system developed by National Payments Corporation of India facilitating inter-bank transactions.
Payment and Settlement Systems Act, 2007: An act of the Indian Parliament that provides for the regulation and supervision of payment systems in India.
NPCI: National Payments Corporation of India, an organization that operates retail payments and settlement systems in India.
Mumbai, Maharashtra: City in India where the central office of the Reserve Bank of India is located.
P. Vasudevan: Chief General Manager, Department of Payment and Settlement Systems, Reserve Bank of India
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2019-20/126
DPSS.CO.PD No.1227/02.31.001/2019-20 December 30, 2019
The Chairman / Managing Director / Chief Executive Officer
Members of National Electronic Toll Collection (NETC) System /
Authorised Payment System Participants / Operators
Madam / Dear Sir,
Enhancing facilitation of National Electronic Toll Collection (NETC) system
India is progressing ahead with NETC gaining large scale acceptance. Currently, the NETC
system allows linking of FASTags with bank accounts – savings, current and prepaid.
2. 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.).
3. The Turn Around Time (TAT) for resolving failed transactions advised vide circular
DPSS.CO.PD No.629/02.01.014/2019-20 dated September 20, 2019 shall also be applicable to
the transactions carried out in the NETC system.
4. The transactions in the NETC system can be performed without any Additional Factor of
Authentication (AFA) and / or pre-transaction notification / alert.
5. NPCI shall facilitate requests received from banks / non-banks in this regard.
6. This directive is issued under Section 10 (2) read with Section 18 of the Payment and
Settlement Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(P. Vasudevan)
Chief General Manager
भुगतान और िनपटान �णाली िवभाग, क��ीयकायार्लय, 14वीमंिजल, क��ीयकायार्लयभवन,शहीदभगत�संहमाग,र् फोटर्, मम्ुबई - 400001
फोनTel: (91-22) 2264 4995; फैक् सFax: (91-22) 22691557; ई-मेलe-mail : cgmdpssco@rbi.org.in
Department of Payment and Settlement Systems, Central Office, 14th Floor, Central Office Building, ShahidBhagat Singh Road, Fort, Mumbai - 400001
�हदं ी आसान ह,ै इसका�योगबढ़ाइए