Explainer: All about FASTag and implementation issues
Sai Krishna Muthyanolla
December 5, 2019
FASTag
is going to become mandatory at all NHAI toll plazas from 15 December 2019. What
all do you need to know about FASTag? 
What are the implementation issues? Here is a detailed explainer.
The Ministry ofRoads Transport and Highways (MoRTH) has made it mandatory for highway motorvehicle users to adopt Fastag for the payment of tolls across the country. The date of implementation hasbeen deferred to 15
December 2019. The Electronic TollCollection (ETC) system has been rolled out by the National Highways Authorityof India (NHAI) to reduce the traffic congestion and allow smooth movement oftraffic on highways by digital toll collection.
Media reported about a recent study by a start-up which estimated that fuel, man-hours andcarbon emissions worth more than Rs.10,000 crores is lost every year due totraffic congestion at toll plazas.
This storyexplains what Fastag is and how it works along with the implementation issues.
Use of Fastag is mandatory from 15 December 2019
MoRTH issued anotification on 02
November 2017 that all vehicles (M andN categories) being sold since 01 December 2017 should be affixed with Fastagon the windscreen as per the government’s specifications.This was the government’s first move towards digitising toll collection. It hasnow been made compulsory for all four wheelers, old & new.
How does Fastag work?
FASTag acts as a transponderand operates on Radio Frequency Identification (RFID) technology. The operationis similar to that of smart cards used in metros. The tag should be secured inthe centre of the windscreen of the vehicle. As the vehicle crosses boombarrier, a device scans the tag and money gets deducted automatically from theholder’s account. SMS notification will be sent to the registered mobile numberfor every transaction.
Where is it issued?
Fastags are available with 22 certified banks, Amazon, Paytm, petrol pumps and at some PoS locationssuch as highway counters and RTOs. Till 15
December 2019, MoRTH has announcedthat the tags will be given free of cost at the NHAI
PoS counters. For purchasing tagsonline through Amazon or banks, one has to pay Rs.100 in addition to therefundable security deposit of Rs. 200. The tags which are purchased from banksdo not allow the customer to link it to any account of their choice. It will belinked to the account one holds in that bank.  The tags have a validity of five years.
What are the documents required to purchase?
To purchase tags,one will have to submit the Registration Certificate of vehicle (RC), KYCdocuments (ID Proof), along with a passport size photograph of the owner. Fortags purchased online, upon downloading the MyFastag application (Android), onehas to fill basic personal details and that of vehicle.
How to recharge?
The account linkedto the tag can be a savings account or a prepaid account. If a prepaid accountis used, it should be recharged as and when required using Debit card/ CreditCard/ NEFT/ RTGS and internet banking. In case of savings bank account, moneyis automatically debited from the account for recharging the tag. Minimumrecharge amount is Rs.100 and maximum is Rs. 1 Lakh. In addition, customersshould also pay a convenience fee based on the transaction value.
What if one does not have Fastag?
Those who do notpossess Fastag will have to use a separate lane and pay twice the actual toll amount if they drive through a Fastag lane. Hybrid lanes oneither side of the highway (left extreme) will be allotted for those withoutFastag.
Helpline number 1033 for customers announced by
Ministry
For assistancewith respect to neutral Fastags, customers can call the helpline
number 1033. For assistance in case ofFastags issued at banks, each bank has a separate Customer Care number aslisted below.
Moreinformation including that related to issuers and location is also available inthe My
Fastag application. Standard OperatingProcedures for road users issued by the Ministry is available here.
TheSOP to be adhered to by toll operators can be accessed here.Monthly passes and concessions for those staying near toll plazas are alsoavailable. Answers to some frequently
asked questions are also available onthe NHAI website.
More than 70 lakh Fastags
sold as on 27 November 2019
Asper the press
release on 27 November 2019, more than 70Lakh Fastags were already issued. On 26 November 2019 alone, more than 1.35Lakh tags were issued. On an average, in July 2019, around 8000 tags were soldevery day. This increased to a daily average of around 35,000 tags in November2019.
Multiple issues in the
implementation
Whilethe government has been stressing on how Fastag would avoid tailgating andensure seamless movement of vehicles at toll gates, the scheme has also beencriticized for multiple implementation issues.
Oneis that there is no
standardisation in initial top up(threshold) purchase in banks. Furthermore, there is no portability in thesense that Fastag purchased from one bank cannot be recharged through otherbanks or wallets.
Thescheme has also been criticised for being favourable to banks for the high Merchant Discount Rate. If the scheme is about makingseamless traffic movement at toll plazas resulting in the reduction of requiredhuman resources, the benefit should be passed onto the road users. On thecontrary, consumers are forced to pay an extra convenience fee whenever theyrecharge the Fastag wallet.
Onthe implementation side, possibility of technical glitch such as multipletransactions cannot be ruled out which might result in a long list ofgrievances.  It is also not clear as towho all will have access to the transaction data that can become a valuableresource for multiple players.