FASTag will be replaced by a new tolling system starting May 1

FASTag will be replaced by a new tolling system starting May 1. Introduced in 2016, FASTag involved placing a tag on a vehicle’s windshield, which was scanned by sensors at toll plazas to automatically deduct the toll amount-aimed at reducing long queues. While the system was designed to streamline toll collection, traffic congestion still occurred in many areas due to issues like unscanned tags, technical glitches, or misuse by some drivers. Big changes are coming to how tolls are paid on highways.

If you’re someone who regularly drives, this update is crucial. Starting 1st of May, 2025, the Government of India will begin phasing out the FASTag system and introducing a new toll collection method. Whether you’re a daily commuter or someone who enjoys weekend road trips, this transition will directly impact all highway users.

Curious about the new toll system?

Under the new ANPR-based system being introduced by the Government of India, tolls will be collected by scanning your vehicle’s number plate using high-tech cameras, eliminating the need for physical tags.

• This system allows vehicles to pass through without stopping.
• No more dealing with separate toll booths, like with this system is much simpler.
• The payment will be deducted directly from your connected bank account or e-wallet.

Why the Government is Replacing the FASTag System

The goal of this shift is to enhance toll collection by making it more efficient, transparent, and time-saving. Despite the use of FASTag, long queues at toll plazas have continued, resulting in unnecessary delays and fuel consumption.

• Minimising traffic buildup at toll booths
• Reducing fuel consumption
• Stopping illegal tax practices
• Establishing a standardised system nationwide

What is the process behind the new system?

This system relies on the installation of sophisticated cameras and software across highways for its operation.

• Upon entering the highway, the camera will automatically scan the vehicle’s number plate.
• The number plate details will be integrated with the registered account for seamless processing.
• This ensures that the toll amount is automatically deducted, making the process seamless.

NOTE: All of these actions will take place in real-time, ensuring that everything is processed instantly. As soon as the toll is deducted, you will receive an update either through SMS or via notifications on your mobile device, keeping you informed throughout the process.

Who’s going to be directly impacted by this?

This system holds great promise for everyone, although some individuals might encounter a few challenges in the early stages

• Vehicle owners with damaged or faded number plates, who may need to address the issue
• Those with discrepancies in their data with the transport department will need to ensure it is accurately recorded.
• While the system may be a bit challenging for the elderly or those unfamiliar with technology at first, it’s designed to become easier with time.

Are there any actions you need to complete?

Certainly, in order to facilitate the proper functioning of the new system, it is crucial that you take these important actions at once:

• Check that your vehicle’s number plate is properly cleaned and in line with ISI regulations.
• It is recommended to confirm your vehicle registration and personal details through the transport department’s online platform.
• Regularly update your bank account or digital payment details to avoid any issues.
• For timely updates, make sure your mobile number is up to date for SMS alerts.

How will the shift impact FASTag?

From the 1st of  May, 2025, FASTag will no longer be in use. There may be a short transition period, but eventually, it will be fully replaced. Expert tip: If you still have money left on your FASTag, it’s a good idea to request a refund from your bank or the FASTag portal.

The advantages offered by the new system include:

• Faster and uninterrupted journeys: Toll stoppages will no longer be necessary.
• Cashless system: With a cashless system, everything goes digital, ensuring clear and transparent payments.
• Reduced traffic: Congestion will allow for quicker and more efficient travel.
• Crime prevention: With number plate tracking, identifying and tracing vehicles will be much simpler.

Possible challenges:

• Problems in toll collection could occur due to unstable internet or technical errors.
• Some individuals might be worried about how their personal data is handled.
• Fraud risks exist in cases where vehicles use falsified number plates or lack official registration.

NOTE: Although there are concerns about data privacy and GPS tracking, the government has assured that the system will be based on India’s own Navic satellite technology, keeping all data secure and stored within the country.

Conclusion: Begin your preparations today.

It is recommended that all vehicle owners familiarise themselves with the new tolling system and arrange for the timely installation of the On-Board Unit (OBU) to prevent future complications.

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The government will facilitate the transition by providing assistance through online platforms and designated support centres. This initiative is aimed at making travel more efficient, affordable, and seamless.