Will I be able to close the NHAI issued fasttag if KYC is not completed? If yes how many days will it take in closure? Also is there any way to get a different bank fasttag meanwhile KYC is getting approved?

No, successful KYC verification is mandatory to proceed with the surrender process.

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How to fix fastag issues?

FASTag allows you to pass through the toll plaza without stopping for the cash transaction. However, at times you might have faced any of the following issues with fastag. Blacklisting ..
  Click here to get a detailed guide