Infrastructure: Energy, Ports, Roads, Airports, Railways etc.



  • The FASTag is a reloadable tag that allows automatic deduction of toll without having to stop for carrying out the cash transaction.
  • The tag uses radio frequency identification (RFID) technology and is fixed on the windscreen of the vehicle once active.

Important points:

  • Radio-Frequency Identification (RFID) is the use of radio waves to read and capture information stored on a tag attached to an object.
  • A tag can be read from up to several feet away and does not need to be within direct line-of-sight of the reader to be tracked.
  • The tag is valid for five years and comes in seven different colours — violet, orange, yellow, green, pink, blue, black.
  • Each colour is assigned to a particular category of vehicles.
  • It was rolled out in April 2016,  and the Government made it mandatory from December 1, 2017 for all new cars and trucks to be fitted with a FASTag before they were sold.
  • To encourage the use of FASTags, the National Highway Authority of India (NHAI) refunds 5% of the total monthly transactions.
  • Indian Highways Management Company Limited (IHMCL) (a company incorporated by National Highways Authority of India) and National Payment Corporation of India (NPCI) are implementing this program.
  • FASTag is presently operational at both, national and state highways.


  • Ease of payment – No need to carry cash for the toll transactions, saves time.
  • Near non-stop movement of vehicles leading to lower fuel cost.
  • Reduced air pollution, reduced use of paper.
  • Reduced toll payment hassles ,analytics for better highway management.
  • Reduced effort in management at toll plaza, reduced effort in monitoring centrally.




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