What is FASTag and How Does it Work?

byMehak BaglaLast Updated: April 16, 2024
NHAI Unveils

In this digital era, cash transactions have become less common. People now shop, bank, and pay bills online, eliminating the need for carrying physical cash. This shift has not only made transactions more convenient but also saved time by avoiding long queues.

One task that used to involve standing in queues was paying toll taxes at toll plazas. To make this process more efficient and in line with digitalization, the government has introduced FASTag technology at national highways. With approximately 615 toll plazas equipped with FASTag, it’s important to understand what FASTag is and how it works.

Understanding the FASTag Technology

To avoid long queues and jams at national highways across the country, the government has implemented the FASTag facility, a cashless model wherein the entire toll tax amount is collected through the FASTag. Since 16th February 2021, all four-wheelers have to mandatorily get the tag fitted on their vehicles.

The FASTag is operated by 35 different banks, which are governed by the National Payments Corporation of India (NPCI) and the National Highways Authority of India (NHAI). The FASTag facility eliminates the manual collection of the tax at toll plazas by using a Radio Frequency Identification (RFID) technology.

The idea is to facilitate electronic toll collection across the country, thereby saving people’s time and effort in the long run. Now, let’s understand how FASTag works.

How FASTag Works?

Here’s how the FASTag technology works-

  • Linking: The FASTag is linked to the user’s prepaid account and is affixed to the vehicle’s windscreen.
  • RFID Technology: The FASTag utilizes Radio Frequency Identification (RFID) technology. When the vehicle approaches a toll plaza, the tag is detected by the toll plaza’s RFID reader.
  • Automatic Deduction: The toll amount is automatically deducted from the linked prepaid account, as the vehicle passes through the toll gate. There is no need to stop the vehicle for payment.
  • Debiting the Account: The transaction is processed, and the prepaid FASTag account is debited for the toll amount.
  • Convenient Travel: The use of FASTag technology eliminates the need to carry cash or manually stop at toll plazas, making travel easier and more convenient for users.

Let’s say that you recently purchased a Paytm HDFC FASTag from the Paytm app. To get started, you decided to load your FASTag account with Rs. 1000 using Paytm UPI. As a result, your Paytm HDFC FASTag account now has a balance of Rs. 1000.

Now, whenever you approach a toll plaza during your travels, the toll amount will be deducted from your preloaded Paytm HDFC FASTag account. This eliminates the need for cash transactions and ensures a seamless and convenient travel experience.

Also Read: How to Link FASTag with Bank Account?

Why Should You Use FASTag?

The Government of India has made it mandatory for all citizens to use the FASTag facility. Let’s understand what benefits does it offer to you:

  • Time and Fuel Savings: FASTag allows you to drive through toll plazas without stopping, saving both time and fuel.
  • Reduced Congestion: With FASTag, traffic jams and congestion at toll plazas are minimized since vehicles can pass through smoothly.
  • Expense Tracking: Keep track of toll expenses with regular notifications and easily review payments in your account.
  • Environmental Benefits: FASTag reduces paper usage and fuel consumption, contributing to a greener environment.
  • Conversion Options: Convert existing monthly or regular passes into FASTag for easy transition and continued convenience.

When Should You Get the FASTag?

Now is the right time to get a FASTag for your vehicle. Since 16th February 2021, it has become mandatory for all travellers to have a FASTag fitted.

Without a FASTag, you will have to pay double the toll amount, which can be quite costly. However, by using FASTag, you can enjoy numerous benefits. It offers a convenient and hassle-free way to make electronic toll payments, saving you time and effort.


What is FASTag?

FASTag is a cashless toll payment system where the toll amount is automatically deducted from the user's prepaid account linked to the FASTag. It is affixed to the vehicle's windscreen and allows for seamless toll payments without stopping the vehicle. Users are notified of charges and can address grievances through the Paytm app.

Is it mandatory to have FASTag?

Yes, it is mandatory to have FASTag installed on four-wheeler vehicles since 16th February 2021. Without FASTag, you will have to pay double the toll amount.

What if I don't have FASTag for my vehicle?

Without FASTag, you will have to pay double the toll amount at every toll plaza you cross.

What are the benefits of using FASTag?

Using FASTag offers several benefits, including time and effort savings by avoiding long queues at toll plazas. It also allows for the use of a single wallet for tolls, fuel expenses, parking, and shopping, with the added advantage of various offers and discounts. FASTag is also environmentally friendly as it reduces paper usage and fuel consumption.

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