Fastag mandatory in India

What is Fastag?

• 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. 
• The National Electronic Toll Collection (NETC) program,
• the flagship initiative of the Ministry of Road Transport and Highways has been implemented on a pan-India basis in order to remove bottlenecks and ensure seamless movement of traffic and collect all toll electronically.
• If the tag is linked to a prepaid account like a wallet or a debit/credit card, then owners need to recharge/top up the tag.
• If it is linked to a savings account, then money will get deducted automatically.
• Once a vehicle crosses the toll, the owner will get an SMS alert on the deduction.
• At NHAI counters at toll plazas, the tag can be bought for free.

Increasing Usage

• Average daily transactions processed through FASTag have

grown from 8.8 lakh in July this year to 11.2 lakh in

November.

• Average daily electronic toll collection has grown from

Rs 11.2 crore to Rs 19.5 crore for the same period.

After the recent thrust, around 70 lakh FASTags have been

issued so far(till 26th Nov.2019) and the number is growing.

FASTag mandatory

• From December 15,2019, lanes on national highway toll plazas across India will accept toll only through FASTag .
• Only one hybrid lane will continue to accept cash in addition to being tag-enabled.
• 560-odd plazas under the control of the National Highways Authority of India (NHAI) will collect toll without human intervention.
• Those without the RFID, entering Fastag lanes will need to pay double the toll.

Benefits of FASTag

Ease of Payment – FASTag users don’t need to carry cash for toll

transactions. As toll payment goes cashless with the use of FASTag.

•  Lower Fuel Cost – Near non-stop movement of vehicles leading to lower fuel cost.
•  Online Recharge – Easy recharge options available to reload cash in FASTag using a debit card, credit card, NEFT, RTGS or internet banking.
• SMS Alerts – SMS alerts facility for low balance, toll transactions, etc.
• Online Portal for Customers
• Incentive / Cashback – Many banks or issuers offer handsome cash back or incentive for use of their FASTag service.

For toll operators

•  Better Highway Management
•  Reduced efforts in managing toll plazas
•  Lower operating cost
•  Better audit control through centralized user accounts 

For Government

•  Improved transparency of toll transactions
•  Fuel Saving
•  Environmental Benefits.

Disadvantages 

• Local people – monthly pass  
• Possibility of location tracking by agencies that store Fastag data.
• The tags sold by banks are not “bank-neutral”. 
• State highways yet to accept Fastag
• Vehicles entering FASTag lanes without FASTag will be charged twice the toll amount.