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Is FASTAG system effective in digital economy?


The union government, determined to digitize the nation has made it mandatory for cars to have Fast ag across all NHAI’S 460 toll plaza on National Highways by 15th December. The result is a surge in the online payments on the highways and great digitization.


  • A brainchild of the Minister of Road Transport, FAST ag is based on Radio Frequency Identification (RFID) similar to meter cards.
  • The tags are put on winds cheers of the cars so that the high-speed cameras can read the tags and deduct toll without the need for the car its stop.
  • Money is deducted from the attached/linked Savings Bank Account or a prepaid wallet and a confirmation message is sent to the registered number.
  • National Payment Corporation of India responsible for the payments.

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Impact of the initiative:-

  • The idea is to facilitate seamless transport across the country without the need to stop for payments, the following are the benefits and drawbacks.


  • Less time for toll payments,
  • Cashless transactions,
  • Positively for a ‘One Nation- one Fast a ‘.
  • Security footage can be used for security purpose at toll plazas,


  • Not all states to bring. State highways under FAST ag and integrate them,
  • Privacy issues of the driver and cars,
  • Implementation issues,
  • Technical issues.


While states such as Karnataka, Andhra Pradesh, Haryana have signed MOUs for One Nation – One FAST ag on a pilot basis, there is apprehension from many states. The benefit is many, but a smooth transition and confidence-building are needed.

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