How will FASTag mandating affect India?

Posted on Friday, February 23rd, 2024 | By IndusInd Bank

FASTagis an easy-to-use tag affixed to your vehicle’s windshield. It eliminates the need to pay in cash at state and national highway toll booths, streamlining the travel experience. Mandated for four-wheelers in 2021, FASTag has since resulted in many benefits for Indian consumers – reduced congestion, traffic, and waiting times. Apply for a FASTag with IndusInd Bank for smarter and greener journeys.

India has the second largest road network in the world, with 1.45 lakh kilometres of national highways. With a 59% growth in the last 9 years, the highway network has witnessed endless queues of vehicles at toll booths.

Enter the revolutionary FASTag, a technological innovation that has transformed this scenario of congestion and pollution on national and state highways. To introduce efficiency in payments and to reduce waiting times at toll booths, the Indian government introduced FASTag for automatic deduction of the toll fee. In 2021, the government made it mandatory for all commercial and personal four-wheelers to install FASTag for payments at toll plazas. Vehicles that enter a FASTag lane without having the tag must pay a penalty to cross the toll.

Since then, this small tag has redefined how we experience road travel, making it seamless, smarter, and more eco-friendly.

Unveiling the Game-Changer: FASTag

FASTag is an electronic toll collection system integrated with Radio Frequency Identification (RFID) technology. Its simplicity is remarkable: a small RFID sticker affixed to your vehicle’s windshield seamlessly linked to your prepaid account.

As your vehicle approaches a toll plaza, the RFID scanner reads the tag, and deducts the toll amount without requiring cash payment. This makes toll payments convenient, frictionless, and swift.

FASTag offers numerous benefits for a seamless travel experience. It eliminates long queues and waiting times at toll plazas by enabling vehicles to pass through the toll booths without a halt.  It streamlines the traffic flow and reduces idling time. The idea is that as each vehicle does not need to stop to pay with cash, there will be faster movement through a booth, leading to reduced fuel consumption plus a significant drop in carbon emissions.

The FASTag toll collection system is operated by the National Payments Corporation of India (NPCI), along with various banks, and Indian Highways Management Company Limited (IHMCL). By mandating the use of FASTag, the government has taken yet another  step towards making India a digital economy.

A Triumph of Accountability

Numbers speak volumes, and in the case of FASTag, they roar. On 29 April 2023, daily toll collection via FASTag peaked at a staggering INR 193.15 crore, marked by an impressive 1.16 crore transactions. Each transaction is meticulously recorded, ensuring every rupee finds its proper place, contributing to India’s infrastructural growth.

Currently, users can use FASTag at 1000+ toll plazas across the country, including state and national highways.

Driving into a Greener Tomorrow with IndusInd Bank

The journey towards smarter, greener, and more efficient transportation in India has just begun. At IndusInd Bank, we are committed to serving as a catalyst for change. IndusInd Bank’s FASTag program is a part of the National Electronic Toll Collection (NETC) initiative launched by the NPCI.

Users can get their own FASTag account by visiting any of the IndusInd Bank branches near them, or by calling the customer care number at 1860 267 7777. All you need to carry to the branch is:

• KYC documents (originals and copies)
• Vehicle’s RC Book

As the FASTag is linked to the user’s prepaid account, the applicable toll amount is debited automatically. FASTag recharge can be done by users online through debit cards, credit cards, net banking, and other online payment modes.

Ready to be a part of this digital journey? Apply today for FASTag online, or offline with IndusInd Bank and usher in a new era of travel!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.