National Payments Corporation of India (NPCI) has developed the National Electronic Toll Collection (NETC) program to meet the electronic tolling requirements of the Indian market. It offers an interoperable nationwide toll payment solution including clearing house services for settlement and dispute management. Interoperability, as it applies to National Electronic Toll Collection (NETC) system, encompasses a common set of processes, business rules and technical specifications which enable a customer to use their FASTag as payment mode on any of the toll plazas irrespective of who has acquired the toll plaza.

What is FASTag?

FASTag is a government-initiated program which works as a prepaid instrument for vehicles on national highways. As of now 23 major banks issue FASTag that is used to facilitate the toll collection system. It uses Radio Frequency Identification technology, allowing users to make toll payments directly from savings or prepaid accounts. Currently, The National Highway Authority of India operates this technology through its subsidiary Indian Highway Management Company Limited.

FASTag was initially set up in 2014 between Ahmedabad and Mumbai, and since December 2017, it has become mandatory for all new vehicles sold in India to have a FASTag. As of 2020, all 615 toll plazas of NHAI along with 100 state highway toll plazas have moved to FASTag for toll collection. It contributes over 80% of the total toll collected across national highways. Starting 1 January 2021, FASTag was to be mandatory for all vehicles but later the date was postponed to 15 February 2021.From Feb 15 onwards, all lanes will be converted into FASTag lanes.

How does FASTag work?

FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly while the vehicle is in motion. FASTag (RFID Tag) is affixed on the windscreen of the vehicle and enables a customer to make the toll payments directly from the account which is linked to FASTag.

FASTag RFID被动标签使用for making toll payments directly from the customers linked prepaid or savings/current account. It is affixed on the windscreen of the vehicle and enables the customer to drive through toll plazas, without stopping for any toll payments. The toll fare is directly deducted from the linked account of the customer. FASTag is also vehicle specific and once it is affixed to a vehicle, it cannot be transferred to another vehicle. FASTag can be purchased from any of the NETC Member Banks. If a FASTag is linked to the prepaid account, then it needs to be recharged/ topped-up as per the usage of the customer. If adequate balance is not maintained by the customer, the FASTag gets blacklisted at the toll plaza. In such a scenario if the customer travels through a toll plaza without recharging then he won't be able to avail the NETC services and would be required to pay the toll fare through cash.

What is benefit of using FASTag ?

FASTag offers the convenience of cashless payment along with benefits like - savings on fuel and time as the customer does not has to stop at the toll plaza.

In January 2019, state-run oil marketing companies IOC, BPCL and HPCL have signed MoUs enabling the use of FASTag to make purchases at petrol pumps.As of September 2019, FASTag lanes are available on over 500 national and state highways and over 5.46 million cars are enabled with FASTag.