The Future of Toll Payments: FASTag Insights

FASTag

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The National Electronic Toll Collection program, created by the National Payments Corporation of India, allows toll payments across the country. It uses FASTag, a system based on Radio Frequency Identification (RFID) technology. FASTag lets vehicles pay tolls without stopping, making payments quick and simple.

In 2021, the National Highways Authority of India made FASTag mandatory for all private and commercial four-wheelers. The FASTag is placed on the vehicle’s windscreen. At toll gates, scanners read the FASTag, and the toll amount is deducted from the linked account. Each FASTag is tied to a specific vehicle and cannot be reused on another.

How FASTag simplifies toll payments

Reducing the wait times at toll plazas and streamlining toll payments, FASTag simplifies toll collection, allowing drivers to make payments directly from their prepaid or savings/current accounts linked to their FASTag. The RFID technology detects the vehicle and deducts the toll fare automatically, thereby reducing congestion at toll plazas. For this purpose, it is mandatory for individuals to maintain adequate funds in their accounts. Failure to do so results in the FASTag getting blacklisted and the customer won’t be able to avail of NETC services.

Customers can purchase FASTag from issuing member banks and NBFCs and can recharge their FASTag account using UPI, credit card, debit card, NEFT, RTGS, or net banking.

New rules introduced in 2024

To make toll collection more efficient and reduce congestion and traffic at toll plazas, the NPCI introduced a slew of new FASTag rules in 2024, which took effect on August 1st. Here’s a closer look at the new rules and changes:

  1. Vehicle registration and chassis number: As per the new rules, new owners of vehicles have up to 90 days to link their vehicle registration number and VIN with the FASTag. Additionally, all owners have to ensure that the details of vehicles, such as the registration number and their information, are updated correctly.
  2. FASTag replacement: Owners had until October 31st, 2024, to replace FASTags older than five years. Moreover, damaged or non-functional FASTags also had to be replaced before October 31st to avoid fines or penalties. It is recommended that you use adhesive support while affixing FASTag, which you can purchase from online marketplaces or offline stores.
  3. Updation of KYV details: Owners must also update the KYV details of FASTags every three years to ensure accuracy.
  4. Uploading of photos: Vehicle owners are required to upload clear images of their vehicles’ front and sides for easy identification and smooth operations at toll plazas.
  5. Linking mobile numbers: The FASTag must also be linked to a mobile number for easy communication and receiving updates.
  6. Linking FASTag to an account: Owners of vehicles are also required to link their FASTag to a valid bank account or prepaid wallet. This is to ensure seamless toll fare deductions at toll plazas.
  7. Hotlisting in case of insufficient balance: If the account linked to the FASTag has insufficient balance, the FASTag will be automatically blacklisted until the account is recharged with the required amount. Such vehicles will also be treated as non-FASTag vehicles and will be charged double the toll fare.

FASTag designs – Changes and innovations

Recently, issuing member banks have introduced innovative FASTag designs for Class 4 vehicles like vans and cars to improve the toll collection process. The new designs are meant to make it easier to identify vehicles at toll plazas and minimise the chances of mischarging. This also makes the toll collection process more efficient.

Future of toll payments – GNSS

In recent months, the prospect of integrating the Global Navigation Satellite System (GNSS) technology into the toll collection systems has opened various exciting possibilities. The GNSS technology promises to further simplify the toll collection process and make the entire procedure more efficient.

  1. By removing the need for traditional toll booths, GNSS can drastically reduce bottlenecks and queues, resulting in a more seamless travel experience for drivers. The distance travelled by the vehicle can be used to calculate toll charges. This also means lower charges for shorter distances.
  2. GNSS technology also provides a more safe and efficient method of collecting toll charges for the government. Furthermore, data collected through GNSS allows the government to better manage traffic and properly plan the infrastructure, as it provides insights into traffic patterns and road usage.

Conclusion

FASTag has significantly simplified the process of toll collection and greatly benefits vehicle owners and toll operators. It is also mandatory for vehicles to affix FASTag while going through toll plazas, and drivers must keep sufficient balance in their accounts to avoid penalties or fines. The new rules and changes introduced last year further streamline the process, reducing congestion and queues at toll plazas. Innovative technologies like GNSS are expected to further improve the toll collection process. This technology tracks the vehicle’s journey via satellite, calculates the distance travelled, and automatically deducts the toll from the e-wallet associated with the vehicle registration. The integration of this technology into the toll collection systems can transform the toll landscape in the country.

Also Read: How Are Guaranteed Payments Taxed

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    West has been driving the business world owing to its developed economies. The leading part of the world is straining to sustain its dominance.