FASTag is a government-issued smart card which is used for automatic deduction of a toll tax on the highways. According to a recent report, the FASTags can soon be used to automatically pay for fuel on the highways. The new version of FASTag, the FASTag 2.0 has been specifically designed for this. IDFC Bank is the first bank to get approval from the RBI for payment of fuel refilling using FASTags. No other Indian bank has been approved the new measures as of yet.
Government of India has been rooting for the new FASTag capabilities to promote cashless transactions across every toll plaza. Since fuel and toll are the top two items that require cash on the road, the use of FASTags for both will make the drivers go cashless which is ultimately the new motto for the govt of India.
In addition to this, the FASTags will be made compulsory for all the vehicles and lanes at the toll plazas expect for one single lane that will accept cash payments. This initiative is expected to start from December 1, 2019. The National Highway Authority of India (NHAI) and the Indian Highways Management Company Ltd are working on several measures to make the FASTags acceptable across major toll plazas in the country.
Some reports also suggest that the government of India is also planning to integrate the FASTags with the GST Network. They are planning to make FASTags acceptable locally even for the parking payments. At present, only 22 banks including ICICI, PayTM and SBI bank are able to issue FASTags.
The total number of toll plazas on the highways is around 450. NHAI has promised to share half of the capital cost required to set up a toll booth if the local agencies agree for a FASTag system for toll payment and fuel refilling.
