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All About the FASTag

  • 30 Jul 2018
  • 2 min read
  • The FASTag is a reloadable tag that allows automatic deduction of toll without having to stop for carrying out the cash transaction. The tag uses radio frequency identification (RFID) technology and is fixed on the windscreen of the vehicle once active.


Radio-Frequency Identification (RFID) is the use of radio waves to read and capture information stored on a tag attached to an object.  A tag can be read from up to several feet away and does not need to be within direct line-of-sight of the reader to be tracked.

  • The tag is valid for five years and comes in seven different colours — violet, orange, yellow, green, pink, blue, black. Each colour is assigned to a particular category of vehicles.
  • It was rolled out in April 2016,  and the Government made it mandatory from December 1, 2017 for all new cars and trucks to be fitted with a FASTag before they were sold.
  • To encourage the use of FASTags, the National Highway Authority of India (NHAI) refunds 5% of the total monthly transactions.
  • Indian Highways Management Company Limited (IHMCL) (a company incorporated by National Highways Authority of India) and National Payment Corporation of India (NPCI) are implementing this program.
  • FASTag is presently operational at both, national and state highways.


  • Ease of payment – No need to carry cash for the toll transactions, saves time.
  • Near non-stop movement of vehicles leading to lower fuel cost.
  • Other benefits are:
    • Environmental benefit  : reduced air pollution, reduced use of paper.                                          
    • Social benefit : reduced toll payment hassles ,analytics for better highway management.
    • Economic benefit : reduced effort in management at toll plaza, reduced effort in monitoring centrally.
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