Impact of FASTags on Indias toll collection


27 Mar 2023

Read about Impact of FASTags on India's toll collection. For more information, check out the bike & car insurance policy from Kotak General Insurance.

The National Electronic Toll Collection (NETC) system was created by the NPCI (National Payments Corporation of India) to let drivers pay tolls electronically at toll plazas nationwide. An end-user can pay the toll using FASTag India without stopping their car at the toll booth.

Radio Frequency Identification Technology (RFID) is used by FASTags, which are fastened to car windscreens and allow for electronic toll payment even while the car is moving.

How does FASTags in India work?

The FASTags works in the following ways -

• As a vehicle enters the Toll Plaza's Electronic Toll Collection (ETC) lane, the Toll Plaza system will record the FASTag information, including the Tag ID, vehicle class, and other details, and transmit them to the acquiring bank for processing.

• To validate the tag data, the acquiring bank will submit a request to the National Electronic Toll Collection (NETC) Mapper.

• NETC Mapper responds with information such as Tag Status, Vehicle class, VRN, etc. when the Tag ID has been verified. The Tag ID will be "Tag ID not registered" if it is not found in the NETC Mapper.

• After the successful confirmation of the FASTag India ID by the NETC Mapper, the acquirer host will determine the appropriate toll fee and start a debt request to the NETC system.

• NETC System will transfer the debit request to the proper financial institution to debit the customer's account.

• The issuer server will then debit the connected tag holder's account and notify the tag holder via SMS. The issuer host will then deliver the response message to the NETC system. The transaction will be deemed accepted if the answer is not provided in a certain amount of time.

• The acquirer host will inform the appropriate toll plaza system when the NETC system tells it of the response.

What are the disadvantages of the FASTag rule in India?

The following are the disadvantages of FASTag India -

• There were problems with RFID readers in the early phases of deployment. That was only working some of the time. Moreover, portable gadgets can malfunction occasionally.

• The automatic electronic deduction mechanism will also fail if the server goes down.

• Toll booths recruited a lot of employees to collect tolls. They won't be needed, and thus, they'll lose their jobs.

• The FASTag India account will be tied to the owner's registration and bank information. Therefore, it is unclear if the new owner can use the same FASTag if the owner sells the car.

• Because the card is shaped like a tag and can easily be lost or stolen, in this case, one must inform the appropriate authorities to block the FASTag account.

• Due to various technical difficulties, there were several occasions when the initial amount was doubled.


Using the FASTag rule in India will impact these policy goals, although it is still being determined how successful this endeavor will be. Even if the policy to collect money through monetization has begun, it is crucial to consider how it is used.

Moreover, the fairness of the concept is highly unsettling if banks are to be recapitalized using public funds, and the state mandates the necessity for a data-intrusive centralized system that breaches privacy to make this funding possible.

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