Introduction: The Policy Brief
The National Payments Corporation of India (NPCI) and National Highways Authority of India (NHAI)-introduced National Electronic Toll Collection (NETC) mechanism, FASTag – having an embedded chip and antenna – is now live. Operational at 604 toll plazas across national and state highways (click here for the full list), w.e.f. 15 Dec. ’19 (although initially the roll-out of FASTag was scheduled for 1st Dec. ’19 – per the letter sent by the Ministry of Road Transport and Highways to the NHAI), FASTag enables automatic collection of toll charges. The government then decided to provide enough time for vehicle owners to switch to FASTags – hence the deferred extension.
Dubbed to be the leading disruptor on India’s national highways, FASTag was first envisioned in 2014. All cars, jeeps, vans, buses, trucks and, commercial and private off-road vehicles that pass the toll booths on national highways will now pay FASTag-enabled toll. The FASTag payments at national highways are incentivised with a cash-back scheme of 2.5% – for eligible customers – until March 31, 2020. FASTag is also poised to facilitate seamless traffic monitoring and fitting policy revisions.
Previously, only a single hybrid lane was to be allotted at every toll plaza having FASTag and other modes of payment – facilitating passage and monitoring of over-dimensional or over-sized vehicles. Depending on the traffic situation at high-traffic volume fee plazas, not over 25% ‘FASTag lane of fee plaza’ were planned to be temporarily converted to hybrid lanes – per the instructions given earlier by the ministry to the NHAI.
At this stage, it was to be ensured that the minimum number of the declared FASTag lanes be converted into hybrid lanes for the time being. Further, a minimum of 75% lanes of every fee plaza were to remain declared and operational as FASTag lanes so as to incentivise the vehicles carrying FASTag.
The One Nation One Tag – FASTag ensures interoperability via cashless electronic processes at toll booths. According to the Memorandum of Understandings (MoUs) that the states and the highways authority signed, the states’ are poised to receive 50% of the capital expenditure (capex) for the toll infrastructure construction.
Buying FASTag is possible by visiting any of the Point-of-Sale (PoS) locations at Toll Plazas or PoS outlets of the NETC Member Banks or their distribution agents or their Sales offices. Otherwise, FASTag can also be availed by applying online at the respective issuer bank’s website or by visiting this NHAI portal link. If you have bought FASTag from Amazon, you will need to download the MyFASTag App and link it to your bank account.
- Do-It-Yourself Activation: FASTags don’t have banks assigned in advance as they are (bank) neutral at the time of buying from a POS terminal or online platform. The online FASTag can be activated by yourself when you enter vehicle details in the ‘My FASTag’ mobile app. There also exists the flexibility to link the FASTag with any of your current bank accounts via the My FASTag Mobile app. The NHAI Prepaid wallet facility is also offered in My FASTag mobile app for you to load money and get your toll fee debited from the prepaid wallet as against getting it debited from your bank account directly.
- Activation by Certified Bank Branch: Alternatively, you can also buy FASTag at the closest certified bank branch and can then link the FASTag with your current bank account.
Document Submission for FASTag
A customer is required to submit the following documents along with the application form for FASTag:
- Signed FASTag application form, given by issuer bank that customers must fill and submit to the bank.
- Registration Certificate (RC) of the vehicle.
- Passport size photograph of the vehicle owner.
- KYC (Know Your Customer) documents as per the category of the vehicle owner.
- A valid driving license.
- Vehicle image (optional).
Recharging the FASTag
Recharging the FASTag account is possible in the denomination of Rs. 100. The maximum amount of recharge is decided depending on the type of vehicle and account link to FASTag. In case the FASTag has previously been linked with your bank account, loading money individually in a prepaid wallet will not be necessary. Although, maintaining enough balance in your FASTag-linked bank account to allow for toll payments is necessary. NHAI prepaid wallet can be recharged via different channels, viz. payment via cheque or via UPI or debit card or credit card or NEFT or Net Banking.
- Limited KYC FASTag account holders can’t have a balance of over Rs. 20,000 in their FASTag prepaid wallet. The monthly reload limit is Rs 20,000.
- In full KYC FASTag account holders aren’t permitted to have over Rs. 1 lakh in their FASTag prepaid wallet (no monthly reload cap exists).
Recharging a FASTag via the BHIM UPI app is also possible – although, buying FASTag via the BHIM UPI app isn’t possible.