What are all the uses of a new electronic toll Collection system by our GOI?

economy : What are all the uses of a new electronic toll Collection system by our GOI?

Answer by Jai Parimi:

What is FASTag?

  • 'FASTag' is an electronic toll collection (ETC) programme which  will allow people to pay their highway tolls electronically without needing to stop at the toll plazas.

How does FASTag work?

  • For implementing ETC across the country, a new company under Company's Act, 1956, "Indian Highways Management Company Limited" is constituted with objectives to collect toll through ETC and manage the project and commercially provide services of central ETC system.
  • The ministry also informed that it has roped in ICICI and Axis bank to provide Central Clearing House (CCH) services and RFID based FASTag through their franchises/agents and at sales counters/points near the toll plazas.
  • People can enroll and get their FASTag badge affixed on their vehicles at designated toll tax plaza locations or ICICI and Axis bank's Point of Sale (POS) stations. FASTag can be recharged online and instant alerts about usage and balance amount on mobile.
  • The unique number of the RFID Tag affixed on the windshield of the vehicle will be read by the readers fitted in the dedicated 'ETC' lanes of plazas and appropriate amount as per the class of vehicle will be automatically deducted from the account of the user.
  • The dedicated ETC lanes will have colour coding for distinct identity recognized as FASTag.
  • Already launched in April 2012 on the 10-km Himalayan Expressway.
  • Recently inaugurated the ETC on the Delhi-Mumbai stretch of NH-8.
  • Two-times toll penalty from non-tag vehicles that enter FASTag lanes.


  • Cashless transaction at toll plazas.
  • Relief to commuters on national highways (NHs).
  • Cut down the travelling time on highways.
  • Helps plug revenue leakages from toll collection.
  • Help track vehicles in case of criminal incidences.
  • Real time data on traffic movement on highways will help prepare road development plans.

Thanks for the A2A TR Vejayanantham. It is claimed that FASTag saves ā‚¹60,000 crore in fuel bills and millions of minutes of waiting time. šŸ™‚

What are all the uses of a new electronic toll Collection system by our GOI?


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