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Economic and environmental benefits of FASTag

Published on 2 Feb, 2022, 10:44 AM IST
Updated on 9 Jul, 2024, 6:44 AM IST
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Team Ackodrive
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Sitting in long queues waiting for your turn to pay toll fees at highway booths can frustrate anyone! To solve this problem, the National Highways Authority of India (NHAI) has implemented FASTag - an electronic toll collection system that uses stickers on vehicle windshields. These FASTag stickers have prepaid wallet balances from which toll charges are automatically deducted when the vehicle passes through the toll. Adoption of this cashless technology is now mandated by law for all four-wheelers as per Indian government guidelines. In this blog, we will understand how this FASTag system works and what economic and environmental benefits it delivers to ease the journey across Indian highways.

Economic

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How does a FASTag work?

A FASTag is a tag you can stick on your vehicle's windshield. It employs RFID or Radio Frequency Identification technology to electronically deduct payments from a user’s digital FASTag wallet. 

You can buy your FASTag wallet online via one of the issuer banks. Then, not only can you automatically pay your toll payments but monitor your toll booth expenses online as well.

FASTag Mobile App Features and Functionalities

The FASTag mobile app offers a convenient way to manage your FASTag account on your phone. It allows you to access essential services without having to visit website portals. Some of the key features include:

Recharges

  • Quickly recharge your linked FASTag wallet through the app via UPI, cards, net banking, etc.

  • Set low balance alerts to be notified when the wallet needs a recharge

  • View the history and receipts of all wallet recharge transactions

Payment Alerts

  • Get instant SMS notifications whenever the toll fee is deducted

  • The alert shows toll plaza location, date/time and deducted amount

  • Helps reconcile toll spending through monthly statements

Trip History

  • The app provides a summary of all trips via toll plazas

  • Details include toll plaza name, date of passage, fees paid

Other Features

  • Track FASTag wallet balance 24x7

  • Manage vehicles linked to your FASTag account

  • Raise complaints and get customer care assistance

The app is a one-stop solution for monitoring the FASTag wallet, recharging it instantly, and tracking toll payments on the go. With an easy-to-use interface, it aims to help customers manage their accounts and payments seamlessly without hassles. Critical utilities like low balance alerts and payment notifications enhance the overall convenience.

How FASTag helps reduce congestion at toll plazas

Manual toll payment causes congestion

Waiting in long queues at toll plazas is frustrating for drivers. Every vehicle must stop at the toll booth so the driver can pay the fees manually in cash. The entire cash exchange process, including providing change back and issuing receipts, is time-consuming. As vehicles wait for their turn, congestion builds up, especially during peak hours, and traffic flow is severely impacted. 

FASTag enables automated toll transactions

FASTag addresses this congestion issue through automatic fee collection. Vehicles are fitted with RFID tags linked to a digital wallet. Dedicated FASTag lanes have overhead RFID readers that automatically detect the tag and deduct the applicable toll fees without human intervention. The transaction happens digitally instantly as vehicles drive through, and there is no need to stop for even a few seconds. 

Smooth traffic flow with FASTag

The automated fee collection mechanism of FASTag ensures that vehicles fitted with it do not have to stop at toll plazas. There is no queuing up behind vehicles going through manual cash lanes. Traffic can continue flowing at average highway speeds even through busy tolls. This seamless movement has significantly increased the throughput capacity of toll plazas, allowing them to handle 50-60% higher traffic volumes. 

Saves time and enhances productivity

Smooth traffic movement through toll plazas enabled by FASTag saves thousands of productive hours previously wasted by commuters and goods carriers stuck in jams. Vehicles reach destinations faster without delays due to manual toll payment congestion. Reduced travel time has a positive impact on economic productivity across transportation sectors. 

Benefits of a FASTag

Apart from being mandated by the government, there are other reasons why you should use a FASTag. 

Economic advantages of a FASTag

With a FASTag, you don’t need to stop at toll booths for cash payments. This results in various economic benefits, as mentioned below.

Fuel efficiency

With FASTag payments, you don’t have to start and stop your car frequently at a toll plaza, which increases fuel efficiency. The improved fuel efficiency also helps to maintain the engine’s health. 

Moreover, drivers don’t need to drive fast to cover for the time consumed at toll booths’ long queues. It helps to save money on fuel and vehicle maintenance in the long run.

Cheaper transportation

As fuel efficiency improves, it reduces the cost of transporting goods through highways. Smooth moving traffic helps with the on-time delivery of goods, which also keeps the transportation cost in check.

Tracking toll expenses

FASTag allows you to monitor the expenses at toll booths digitally. You can decide how much money you want to recharge in your FASTag wallet. Plus, you get an SMS notification on your registered mobile number after every toll payment deduction. 

Also, read: How to Check FASTag Balance

Environmental advantages of a FASTag

Apart from convenience and economic benefits, FASTags also help to keep environmental pollution in check in the following ways.

Lower carbon emissions

FASTag payment eliminates the possibility of long traffic jams at toll booths, and in turn, it saves a lot of fuel for all vehicle drivers. It also results in reduced carbon emissions. The government expects to decrease India’s carbon footprint by approximately 35% by 2030 using the FASTag toll payment system. 

Paperless payments

Apart from decreasing carbon emissions, FASTags also benefit the environment by enabling paperless toll payments. Excessive use of paper leads to deforestation, which negatively impacts rainfall, soil conditions, and global warming. Using the electronic payment system lowers the expense of papers used to create cash and toll payment receipts. 

Reduced noise pollution

No one likes to hear noise or honking in traffic jams at toll plazas. FASTag’s swift payment approach reduces noise pollution by seamlessly flowing traffic across the booths.

Security features of FASTag

Secure Transactions in Indian Conditions

  • FASTag integrates multiple layers of security to enable safe cashless payments despite internet connectivity challenges across India's toll plazas.

  • Uses offline authentication mechanisms to verify payments even with intermittent networks

  • Advanced encryption ensures transaction safety despite vulnerabilities in Indian cyberinfrastructure

Two-Factor Authentication for Indian Users

  • In addition to username & password, OTP over SMS provides two-factor authentication critical for Indian customers new to digital payments.

  • Extra verification layer essential due to low tech-savviness and higher risk of phishing attacks

Privacy and Security for Indian Roads

  • Encryption as per the Indian Government's guidelines to enable privacy and prevent theft of critical logistics data

  • Adherence to the Indian IT Act for data security and cyber fraud prevention

  • Indian algorithms created specifically keeping Indian road traffic patterns in mind to prevent toll fare leakages

Indian Support and Security Teams

  • Dedicated Indian security researchers and developers to design systems-based ground realities in India

  • Indian support teams well-versed in regional languages assist local cyber threats

  • Physical and IT security personnel deployed, especially across Indian toll plazas

The underlying foundations of FASTag's security apparatus are built ground-up for India - from encryption standards to authentication mechanisms to cybersecurity professionals. This hyper-local approach is essential for enabling safe cashless transactions, given the unique challenges of Indian conditions.

Conclusion

FASTag has proven to be a game-changing innovation that brings immense benefits to Indian road transportation. FASTag has considerably eased congestion and reduced vehicle travel time by enabling automated, electronic fee collection at toll plazas. The smooth traffic movement also results in substantial fuel savings and lower carbon emissions per vehicle. For customers, FASTag provides convenience through digital payments, easy account management via mobile app, and transparency in toll spending. With solid security protocols for cashless transactions and multiple recharge options, FASTag has seen rapid adoption across vehicle segments. 

Frequently asked questions

Below are commonly asked questions answered about FASTag.

What are the different ways to buy a FASTag?

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You can opt for online or offline methods to purchase a FASTag. There are multiple FASTag sale points at NHAI toll plazas, certain petrol stations, etc. 

On the other hand, you can go online to purchase a FASTag from an issuer bank’s portal or other authorised platforms. ACKO Drive offers a hassle-free approach to buy a FASTag for free and get it delivered to your doorstep within 5 working days.

How can I use a FASTag?

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Once you purchase a FASTag, it comes assigned to a single registration number. You are supposed to install the tag on your vehicle. Make sure the location where you attach the tag is easy for the RFID reader to detect at toll plazas. 

After installing the tag, you need to make sure that your FASTag wallet has enough balance for the payments required on your journey through highways. You can check your balance or recharge your FASTag online via the issuer bank or any other authorised payment portal.

Is a FASTag mandatory to cross toll plazas?

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Yes, the Government of India has mandated the installation of FASTag for four-wheelers since February 16, 2021. A FASTag is now also mandatory to apply and obtain Third-party Vehicle Insurance.

What happens if I try to go across a toll booth without a FASTag?

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In case you choose to cross toll plazas without a FASTag, you will have to pay double the regular toll amount. The same condition applies if your FASTag gets damaged and undetectable by the RFID reader.

How can I recharge my FASTag online?

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Recharging a FASTag is pretty easy with multiple online options available such as UPI, net banking, digital payment portals, etc. ACKO Drive FASTag customers can visit the website/app to recharge their FASTag using the following steps.

  • Step 1: Access your ACKO Drive account using the registered mobile number.

  • Step 2: Select ‘My Account’, then click on ‘View’.

  • Step 3: Select an amount you want to recharge your wallet with.

  • Step 4: Click on ‘Recharge Now’ and follow the payment instructions.

What are the minimum and maximum recharge amounts for FASTag?

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The minimum and maximum recharge amounts for FASTag are Rs. 100 and Rs. 1,00,000. You can choose any recharge amount between this range.

What is the validity of a FASTag?

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A FASTag stays valid for 5 years from the date you purchase it. You can keep on recharging the wallet to use it for automated payments at toll booths on NHAI highways. If your FASTag gets damaged somehow, you can apply for a replacement from the issuer bank.

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