The government of India has made it mandatory on all new cars to be fitted with a FASTag device. The device will utilise Radio Frequency Identification, also known as RFID technology, for cashes payments at tolls. Each time a vehicle passes through the toll, the system will automatically deduct the amount from the account which is linked to the tag.
FASTag is offered for a onetime fee of Rs 200 and is valid for five years from the date of issue. The user will get an SMS alert for every transaction from the account. The RFID chip features on the car’s windscreen which will be read by detectors at the toll plaza. This eliminates the need for commuters to stop for toll payments in cash. Currently, an additional Rs 200 needs to be paid as security deposit, which we believe might be discontinued.
Reports indicate that there are around 370 toll plazas across the national highway network. The system will be inter-operable and can be used at various toll plazas. More details about the FASTag will be known in the days to come.
