Promoting Digital and IT based payment through FASTag

September 4, 2020

Ministry of Road Transport and Highway recently notified draft notification to seek comments from the stakeholders on making FASTag mandatory for old vehicles sold before 1st December 2017.

Key points

It proposed, having a valid FASTag will be mandatory while getting a new 3rd Party Insurance through an amendment in FORM 51 (certificate of Insurance).
Earlier, the Central Motor Vehicles Rules, 1989, had made FASTag mandatory since 2017 for registration of new four-wheeled Vehicles and is to be supplied by the Vehicle Manufacturer or their dealers.
It also mandated that the renewal of fitness certificate will be done after the fitment of FASTag for the Transport Vehicles.
The fitment of FASTag has been mandated since 1st Oct 2019 for the National Permit Vehicles.

What is FASTag?

FASTag is a sticker that is pasted to the windscreen of vehicles
It uses RFID technology to enable digital, contact less payment of tolls without having to stop at toll gates.
Sensors are placed on toll barriers and these barriers open for vehicles having valid FASTags.
A FASTag is valid for five years
Can be recharged as per requirement.
Currently 60 lakh vehicles in India have FASTags.
FASTag can be purchased from any NETC Member Banks
These tags are linked to bank accounts and other payment methods.
The amount is automatically deducted at the toll plaza, and notification is sent to the registered mobile phone number.

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