What is Fastag for vehicles and how it works

FASTag is an innovative and sophisticated electronic toll collection system that is being introduced in India. This scheme is presently operated by the National Highway Authority of India (NHAI). FASTag works by Radio Frequency Identification (RFID) technology. Under this system, toll payments can be made directly from the prepaid or savings account linked to the system. FASTag is affixed to the windscreen of the vehicle and the vehicle can be driven through the toll plazas without making a stopover for transactions. The tag is made available for purchase from the participating banks or official Tag issuers. Once FASTag is linked to the prepaid account of the vehicle owner, recharging or top-up can be done as per the wish of the owner.

FASTag has an unlimited validity as per the announcement made by NHAI. In order to promote the use of FASTag among the vehicle owners, 7.5% cashback offer has been introduced. In a number of toll plazas, there are exclusively dedicated lanes built for the vehicles fitted with FASTag.

In January 2019, some state run oil companies like IOC, BPCL and HPCL have signed MoUs that make it possible to use FASTag system while making purchases from petrol pumps.

FASTag lanes are increasing rapidly across a large number of toll plazas in the country.

The government of India has announced that FASTag will be made mandatory for all vehicles from December 1, 2019. Those vehicles that have not moved to the FASTag system will have to pay double the toll charges as per the present announcement.