FASTag is a digital system which has been developed by the National Payments Corporation of India (NPCI). It is based on National Electronic Toll Collection (NETC) programme. Due to the recent mandatory implementation, the word ‘FASTag’ has become more familiar within the general public at large. Implementation of ‘FASTag’ is a huge step towards Digital India.

FASTag is made mandatory from 15th December 2019 for all the four wheeler passenger vehicles and all the commercial vehicles like trucks, bus, tractors and construction machinery at all the national highways.

The present article covers various points relating to FASTag like introduction and implementation of FASTag; meaning, working and benefits of FASTag; procedure to be followed to get a new FASTag; list of documents required for the new FASTag; FASTag activation; FASTag charges; Penalty and Frequently Asked Questions.

Introduction of FASTag and its implementation thereon –

FASTag system was firstly set up, as a pilot project, in the year 2014. Step by step the FASTag lane were being launched, and by 1st October 2017 the National Highway Authority of India (NHAI), launched a FASTag lane in almost all of its toll plazas.

From December, 2017, the FASTag system was made mandatory to be issued for all the new vehicles sold in India. The Government, on 19th October 2019 announced the FASTag to be mandatory on all the National Highway from 1st December 2019. However, the said due date for mandatory FASTag has been extended to 15th December 2019.

Understanding the meaning, working and benefits of FASTag –

FASTag is an ‘Electronic Toll Collection’ system adopted in India. It is a ‘tag’ which permits an automatic deduction of toll charges. The working of the FASTag is explained hereunder –

  • FASTag is basically a tag / sticker which contains an embedded chip and an antenna.
  • FASTag is to be fixed on the windscreen of the vehicle.
  • FASTag enables automatic collection of toll charges as and when the vehicle passes through the toll booth / toll plaza. Importantly, there is no required of a vehicle to stop at the toll booth for payment of toll charges.
  • FASTag employs RFID – Radio Frequency Identification technology which helps to recognize the passing of the vehicle along with details like vehicle class and the status of the tag.
  • FASTag is connected either to the bank account or to the payment wallet, which enables automatic deduction of toll charges.
  • The registered owner of the vehicle would be intimated about the amount deducted via SMS on his registered mobile number.

Benefits of FASTag –

  • As the vehicle is not required to stop on the toll booth for the payment of toll charges, it highly reduces the traffic on the toll booth.
  • Due to auto deduction of toll charges and non-stoppage of vehicle, it results into faster transit. Faster transit ensures saving of the fuel and time of the vehicle owner.
  • Additionally, the FASTag holder would be benefitted with 2.5% cash back on every toll charges paid at the national highway till 31st March 2020.

Procedure to be followed for getting a new FASTag –

Following are the ways of obtaining a new FASTag –

1. Online mode –

FASTag can be obtained / purchased online through 22 certified issuing banks. Following is the list of 22 banks through which FASTag can be purchased –

  • ICICI Bank
  • State Bank of India
  • Axis Bank
  • HDFC Bank
  • IDFC Bank
  • PayTM Payments Bank Ltd
  • Kotak Mahindra Bank
  • Karur Vysya Bank
  • Syndicate Bank
  • EQUITAS Small Finance Bank
  • Punjab National Bank
  • South Indian Bank
  • Punjab and Maharashtra Company Bank
  • Fino Payments Bank
  • Saraswat Bank
  • Bank of Baroda
  • IndusInd Bank
  • City Union Bank
  • Nagpur Nagarik Sahakari Bank Ltd
  • Yes Bank
  • Union Bank
  • Federal Bank

FASTag can also be purchased from NHAI website or IHMCL website. Further, FASTag can also be purchased through e-commerce platforms like Amazon and Paytm.

2. Offline mode –

More than 28,500 Point of Sale Locations, have been established by the Indian Highways Management Company Ltd (IHMCL) and various bank, through which FASTag can be purchased.

It should be noted that Point of Sale Locations includes National Highway toll plazas; various bank branches; selected petrol pumps; RTO; Common Service Centres; transport hubs etc.

3. Mobile App –

For smooth functioning of FASTag, the National Highway Authority of India has launched a mobile app ‘My FASTag App’. The application helps the common public in the following ways –

  • App is consumer friendly and works on both Android and ios system.
  • One can purchase and recharge the FASTag through the App.
  • One can even find the list of all the point of sale locations through the App.

Documents required for new FASTag –

Following is the list of documents which are required for obtaining a new FASTag –

  • Registration certificate of the vehicle;
  • Passport size photo of the owner;
  • KYC documents like ID proof and address proof.

FASTag Activation –

FASTag purchased through online or offline mode is bank neutral i.e. no bank is pre-assigned to the FASTag at the time of purchase. FASTag can be activated in the following two ways –

  • Self activation –

Self activation can be done through ‘My FASTag App’. Wherein, firstly, one is required to enter the vehicle details. Secondly, one needs to link the FASTag to any of its existing bank account or to any of the payment wallet.

If the FASTag is link to the bank account, the toll charges would be directly get deducted from the bank account. However, if the FASTag is linked with the payment wallet, the toll charges would be deducted from the amount loaded in the payment wallet.

  • Activation through visiting the certified bank branch –

One can also activate the FASTag by visiting any of the above listed 22 certified bank branches.

FASTag charges –

FASTag issuing charges are defined by the individual banks and hence the charges may vary from bank to bank. However, the National Payment Corporation of India (NPCI) has fixed INR 100 as the maximum FASTag charge.

Penalty –

As seen above, the Government has made FASTag mandatory from 15th December 2019. In case the FASTag is not obtained, after the expiry of the due date, the vehicles without FASTag would be penalized with double the toll charges.

Frequently Asked Questions (FAQ) –

Even though FASTag was introduced in the year 2014, since recently implementation of the same has been made mandatory, now the common man is trying to adopt the same. Various questions pop up in the mind of the common man while trying to adopt FASTag, some of the same are answered herein below –

1. How does a FASTag work?

FASTag is a device which works on Radio Frequency Identification (RFID) technology. FASTag enables auto deduction of toll charges. It is to be affixed on the windscreen of the vehicles.

2. How can I buy FASTag?

FASTag can be bought through any of the 22 certified banks or through any of the 28,500 Point of Sale Locations. FASTag can also be bought through the e-commerce portal Amazon or Paytm.

3. Where do you stick FASTag in a car?

FASTag is to be sticked on the windscreen of the vehicle.

4. How do I recharge my FASTag?

FASTag can be recharged at the Point of Sales (POS) locations via Cash. FASTag can also be recharged online via NEFT, RTGS, Credit Card, Debit Card or Net Banking.

However, if the FASTag is linked to the bank account, then, there is no need to undergo the recharge procedure since the toll charges would get deducted directly from the bank account.

5. What to do when the FASTag is lost?

In case the FASTag is lost, one is required to call the customer care number of the issuing agency and is required to block the FASTag which is lost.

6. Can one FASTag be used for two vehicles?

No, one need to obtain separate FASTag for an individual vehicle. FASTag purchased for one vehicle cannot be used for another vehicle.

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Company: Taxguru Consultancy / Taxguru Edu
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One Comment

  1. Suhas sabnis says:

    The article notes the responsibility of the customers vis a vis fastag…..what about the toll operators responsibility of implementing latest technology and equipment….most tolls have scanners that are fit to be in junkyards….in that event will the govt instruct toll operators to pay twice toll amount to customer…. typically as always only customer is responsible and toll operators and govt responsibility is nil…sic

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