FASTag is an electronic toll collection system, a concept and scheme, in India that uses Radio Frequency Identification (RFID) technology to facilitate cashless toll payments directly from a linked account while a vehicle is in motion. The program was rolled out by the Ministry of Road Transport and Highways (MoRTH) in 2014 to solve the problem of congestion and long queues at toll plazas by eliminating cash transactions. The system is operated by the National Highways Authority of India (NHAI).
The mechanism is part of the National Electronic Toll Collection (NETC) program, which provides an interoperable nationwide solution. A small, rectangular tag is affixed to the vehicle's windscreen; as the vehicle passes through a toll plaza, an RFID reader scans the tag, and the toll amount is automatically deducted from the customer's prepaid or savings account. The National Payments Corporation of India (NPCI) maintains the NETC mapper and acts as the Clearing & Settlement House for the transactions.
The system was made mandatory for all new vehicles sold after December 2017 and for all Class M & N vehicles from January 1, 2021, through amendments to the Central Motor Vehicles Rules (CMVR) 1989. A recent policy shift, effective from April 10, discontinued cash payments at toll plazas, making electronic payment mandatory. Vehicles without an active FASTag must now pay 1.25 times the standard toll fee using other digital modes. Furthermore, the NHAI recently enforced the 'One Vehicle One FASTag' concept and directed issuer banks to validate the Vehicle Registration Numbers (VRNs) linked to tags to ensure accuracy and prepare for the future rollout of Multi-Lane Free Flow (MLFF) tolling.