Fastag-The New Way To Pay Toll Tax

Shubham Kumar Shubham Kumar
Jan 22, 2020 3 min read
Fastag-The New Way To Pay Toll Tax

HOW irritating can be to stop at toll tax areas, and pay the cash? With India promoting cashless economy, the Toll tax centres are also taking a major step towards making the whole process a cashless and in order to do so, GOI has introduced Fastag.

Fastags refers to an electronic toll collection system in India. It is operated by the National Highway Authority of India (NHAI). To make it simple, there are prepaid rechargeable tags for toll collection that allow automatic payment deduction fixed on the windscreen of the vehicle. In order to reduce the traffic at the toll places, GOVERNMENT OF INDIA make it mandated all the toll plazas, to make toll payments electronic, from 1st Dec 2019, and because of this, all the  vehicles passing through toll plazas will have to pay toll charges using Fastag.

What are  Fastag?

Fastag is a simple to use, reloadable tag which enables the automatic deduction of toll charge and allows the user to pass through the toll plaza without stopping for paying the toll tax in cash.

How fastag works?

The fastag uses a simple formula to work. It is linked to the user's prepaid count from where the amount required for toll is deducted. It applies a Radio-frequency Identification (REID) technology which is affixed on the vehicle's windscreen after the account is active. It is a solution for a hassle free trip on the highways.


  1. It has SMS alerts for transactions which allows the customer to receive SMS alerts on the user's registered mobile numbers for  all the transactions done in the tag account.
  2. As Fastag are read by the tag reader at the plaza and the amount is deducted automatically, as soon as the car reaches the toll plaza. So, the vehicle doesn't have to wait on the toll plaza, saving both time as well as fuel of the user.
  3. It allows the customer to recharge their tag account online via their credit card, debit card, NEFT, RTGS, UPI or net banking.
  4. Due to fastag, the drivers are now don't have to carry around cash for toll payments.
  5. To keep a track on the statements and transactions the users can check it by log-in to their fastag customer portal.


  1. Till December 1,NHAI is distributing it free of cost, with amount of ₹150.
  2. The one-time joining fee is ₹100 including taxes.
  3. Afterwards, the user has to maintain a security deposit of ₹200 for car, jeep, van and a minimum balance of ₹100.
  4. One can also link the account directly to their account or can keep the amount in their Fastag wallet.
  5. The minimum recharge amount is ₹100.

How to purchase Fastag?

The user can buy the fastag at Amazon and a few selected banks like SBI, HDFC, ICICI, Axis Bank etc. To buy fastag, the user needs to submit KYC documents like Registration certificate of the vehicle, passport-size photograph KYC docs of the vehicle owner and ID proof(any of the following driving licence, aadhar card, passport, PAN or Voted ID).

After purchasing it, the user needs to activate it by entering details related to the user and the vehicle in my Fastag mobile app.

How to check the balance on the FASTAG?

The customer on check the balance on the website of the issuer agency.

How to block the Fastag if the card if lost?

Customer can call up the customer care number of the agency from where, they issued the Fastag and can block their fastag accounts.

What to do if one lost their Fastag card?

After losing the card, one can call up the customer care customer care number of the agency from where, they issued the Fastag and can block their fastag accounts. Then, one can open a new account and the balance of the old account can be transferred to the new one.

One hashtags can be used for one vehicle only and the customer has to buy separate Fastag for separate vehicles.

Also Read: ClearTax launches feature of Nil GST Return Filing for CAs and Businesses

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