Everything you need to know about FASTag and how it works?

Digitalization has had a significant positive impact on various sectors of the Indian economy, including the transportation and logistics sector in India.

Road transportation is the most dominant mode of transport in India, with a vast network of national and state highways, urban roads, and rural roads. In the past, one had to wait in long queues while crossing the toll plazas which were a pain for commuters. The task of paying tolls was tedious and time-consuming. However, FASTag – a digital toll payment and collection system – has enabled the automatic deduction of toll charges without requiring vehicles to stop at the toll plaza. The hassle-free and contactless payment system has also made it easier for commuters to travel without the need to carry cash or stop at toll booths, improving the overall experience of traveling by road. FASTag has helped to reduce traffic congestion at toll plazas, enabling vehicles to move faster and more efficiently on highways.

The government introduced the FASTag technology on national highways across India. The electronic toll collection system was started by the National Highway Authority of India (NHAI) and is based on Radio Frequency Identification Technology (RFID). FASTag was made mandatory for all four-wheelers on February 16, 2021. In case, a vehicle is found without FASTag, the driver will have to pay double the toll charges applicable to the category of vehicle. FASTag is operated by 38 banks across India.

How FASTag works?

A vehicle owner can purchase a FASTag from any authorized bank, toll plaza, or online platform. The owner then links the FASTag to their prepaid or savings account by providing the necessary details, such as vehicle registration number, bank account number, and KYC documents.

Once the FASTag is activated, it is fixed on the windshield of the vehicle.

As the vehicle approaches a FASTag-enabled toll plaza, an overhead RFID reader reads the unique identification number on the FASTag.

The toll amount is automatically deducted from the linked account, and the gate opens automatically, allowing the vehicle to pass through.

The technology works in a manner that the user doesn't have to stop at the toll plaza to pay tax.

FASTag's benefits

One of the benefits of enabling FASTag is that motorists don't have to stop at the toll plaza to pay the toll. Instead, they can pass through the toll plaza without any disruption to their journey. This saves time and fuel, which otherwise would have been wasted in making payments. According to an Impact Assessment study carried out in the year 2021, around 9,78,200+ tons of carbon dioxide (CO2) emission have been reduced through the adoption of this technology at fee plazas along National Highways and selected State Highways.

Furthermore, it helps reduce traffic jams at toll plazas. If someone is traveling by road from Delhi to Jammu, they will come across 9 toll plazas during the journey. One has to pay about INR 910 as toll fees. With FASTtag, they will not have to worry about carrying cash and stopping over toll plazas. They can enjoy a hassle-free journey with FASTag.

Moreover, users can track tax payments easier through SMS notifications and emails on their registered mobile numbers. There is also a dedicated FASTag portal through which one can access their account statement.

Travelers can also recharge their accounts online easily through net banking, debit card or UPI. There are several recharge options available. Moreover, FASTag has unlimited validity. It can be used till the tag is read by the reader and not tampered with.

How to buy FASTag?

• • Vehicle owners can visit the nearest toll plaza, an issuing bank, or a digital platform to apply for a FASTag.
• • One needs to have the KYC documents, the vehicle's RC book, driving license, and a passport-sized photograph of the vehicle owner. The applicant has to fill out an application form, submit the documents and make the payment.
• • The issuing entity will then verify all the documents before accepting the application. A representative from the issuer will then fix FASTag on the vehicle after registration or deliver it to the user’s address in a few days.

One can conclude that the introduction of FASTag has been a significant step towards the digitization of the transportation sector in India, which is likely to continue to evolve with the introduction of new technologies and initiatives aimed at improving efficiency, safety, and sustainability.

Worldline Electronic Toll Collection (ETC) solution offers end-to-end transaction processing, reconciliation and settlement services, risk management and reporting tools, enabling efficient management of FASTag payments while providing a seamless digital payment experience for commuters.