What is a FASTag, and how does it work?
FASTag is a sticker tag, which you can stick on the windscreen of your vehicle. This tag enables automatic electronic payment at toll plazas through Radio Frequency Identification or RFID technology.
Each FASTag comes with a barcode linked to a car’s registration details. So, every time a vehicle crosses a toll plaza, the barcode is detected to deduct the necessary toll fee from the linked digital FASTag wallet.
Let’s talk about the new FASTag rules and toll payment at toll plazas across the country.
FASTag is mandatory
From February 2021, the government has made FASTag mandatory for all commercial as well as personal four-wheelers for payments at toll plazas. So, it is more like a necessity than a choice to install a FASTag on your car.
Double toll charges without FASTag
If you wish to cross a toll plaza without a FASTag, the cash payment will cost you double the regular toll charges. Hence, it is better to simply install a tag and save yourself some money and time at toll booths.
Double toll charges if FASTag doesn’t work
Upon entering a FASTag toll lane, the toll charge will be double the regular amount if your tag doesn’t work for some reason. So, it would be better to ensure that you have sufficient balance in your FASTag wallet and the RFID barcode is not damaged before entering a toll booth.
No toll charges if the waiting period exceeds 10 seconds
The new guidelines from the National Highways Authority of India (NHAI) state that the waiting period at toll plazas can’t exceed 10 seconds. If a vehicle has to wait for more than 10 seconds, the driver can pass through the booth without paying any toll.
Vehicle queue at toll booths must be within 100 metres
To ensure a seamless traffic flow, the NHAI has also decided to follow a 100-metre queue rule at toll plazas. Each toll lane will contain a yellow marking at a 100-metre distance. So, if a vehicle has to wait in a queue beyond the 100-metre mark, it can pass without any toll charges.
FASTag is mandatory for third-party insurance
Third-party motor insurance is mandatory for every vehicle as per The Motor Vehicles Act, 1988. Now, if you want to buy this insurance for your vehicle, you must have a FASTag assigned to that vehicle’s registration number. Hence, you need to purchase a FASTag even if you don’t plan to take your car on highways.
One FASTag for one vehicle only
When you buy a FASTag, it comes linked to your vehicle’s registration number. Hence, a FASTag is only usable for a single vehicle, not two or more. There is a penalty for using a FASTag for multiple cars. So, if you have more than one car, make sure you purchase one tag for each of them.
A FASTag stays valid for 5 years
Once purchased, a FASTag stays valid for 5 years. You can simply recharge the tag from time to time to maintain the required balance as per your travel plans through highways.
Growth of FASTag Usage
As of 2024, FASTag usage in India has seen significant growth. The number of FASTag transactions has increased substantially, with the National Electronic Toll Collection (NETC) system recording about 3.1 billion transactions by January 2024. The transactions stood at 3.4 billion in the previous year. The total toll collection for the fiscal year 2023-24 up to January reached Rs. 53,289 crore.
Overall, the government's push for digital toll collection through FASTag has modernised India's tolling infrastructure, increasing efficiency and revenue collection while providing a smoother travel experience for vehicle owners.
Advantages of using FASTag
Paying toll charges with FASTag results in the following advantages for you.
You won’t have to carry cash to pay tolls.
It will save you time and fuel while driving through toll booths.
Immediately after passing through a toll lane, you get a message on your registered phone number containing details of the transaction. This adds more transparency to the charges you pay at toll booths.
You can manage your FASTag wallet’s balance by recharging it online through NEFT, UPI, RTGS, credit or debit cards.
Using the issuer bank’s FASTag portal, you can check the status of your transactions.
FASTag toll payments are linked to your vehicle registration number, so there is transparency in tax collection.
You only pay the toll for the distance travelled on highways instead of fixed charges. Useful for frequent short-distance travellers.
FASTags are readily available at designated points of sale and online, making adoption convenient.
FASTag can be integrated with other solutions like insurance, fuel payments, etc., for an enhanced experience.
As per the government’s vision, FASTag promotes digital transactions among vehicle owners.
Banks/agencies periodically offer deals like cashback or rewards to promote FASTag adoption.
Many central banks in India allow account holders to apply for a FASTag linked to their bank account. This makes the process of recharging and payments very seamless. Some of the leading banks that issue FASTags include:
Public Sector Banks: Some major public sector banks that issue FASTags are the State Bank of India (SBI), Bank of Baroda, Canara Bank, Union Bank of India, etc. Since public sector banks have a widespread reach, their FASTag service is also widely available.
Private Sector Banks: Leading private banks like HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and Yes Bank also offer FASTag services. These banks provide online portals and apps for easily managing FASTag accounts.
In addition to regular bank-issued FASTags, many prepaid payment wallet companies also provide FASTags that must be recharged separately, such as phone connections. Some popular prepaid wallet brands that offer FASTags include:
Paytm FASTag: Backed by a large user base of Paytm wallet, Paytm FASTags have emerged as a leading choice in the prepaid toll tags segment. The tags can be recharged instantly through the Paytm app.
FreeCharge FASTag: Freecharge pioneered prepaid mobile recharges in India and offers FASTag reloads. This provides another trusted option for prepaid toll payments.
Mobikwik FASTag: Digital financial services company MobiKwik also issues NHAI-compliant FASTags. It aims to capitalise on its existing user base to onboard vehicle owners.
Ola Money FASTag: Ride-hailing firm Ola has also introduced FASTags through its Ola Money platform to expand its range of offerings.
Amazon Pay FASTag: E-commerce central Amazon also offers prepaid wallet-issued FASTags to increase user engagement on its platform.
FASTag Issuers
The different entities that issue and enable FASTags in India fall into three major categories: Banks
As discussed earlier, central public and private sector banks issue FASTags, linking them to customers' bank accounts. This offers a seamless experience for account holders.
Prepaid Wallets
In addition to regular banks, the emergence of prepaid payment apps and mobile wallets like Paytm, Freecharge, Amazon Pay, etc., has created a new segment of FASTag issuers. These issuers target users who prefer the prepaid recharge model.
Other Financial Institutions
Apart from banks and prepaid wallets, other types of financial institutions also issue FASTags to cash in on this opportunity:
Payments Banks: Leading payment banks like Airtel Payments Bank provide FASTag as part of their digital payments portfolio. Fino Payments Bank is another active player in this domain.
Small Finance Banks: These relatively new niche banks, like Equitas Small Finance Bank, also issue prepaid and postpaid FASTags.
Vehicle owners in India now have a comprehensive range of options for obtaining FASTags from established banks to new-age fintech companies. This has accelerated FASTag adoption across the country.
Conclusion
The Indian government has implemented FASTag, an electronic toll collection system using RFID technology, to ensure smooth traffic flow and transparent toll payments at highway booths. FASTag use is now mandatory for all vehicles, with penalties for non-compliance. Vehicle owners must purchase FASTags linked to their bank account or prepaid wallet from authorised issuers. They must ensure sufficient balance for automatic deductions when crossing toll plazas.
Frequently asked questions
