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How FASTag Works

By Finserv MARKETS - Dec 31,2019
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How Does Fastag Work

The latest Government mandate states that all the vehicles passing through the toll plaza should make use of FASTags for paying at the tollgate. As a matter of fact, not a lot of people are aware of what FASTags are and how does it work. In this article, we will be discussing FASTag – how it works? But before we dive deep into this topic, let us first understand what FASTag is.

What are FASTags?

FASTag was launched in 2014 and has grown beyond leaps and bounds ever since. It is nothing but a contactless system that allows automated toll fee collection. As of now, the National Highways Authority of India (NHAI) manages this system. To make successful toll payments, FASTag utilizes the Radio Frequency Identification technology when the vehicle is moving. This thus eliminates the need for stopovers.

FASTags are available in the form of stickers that need to be pasted on the windscreen of your vehicle. This sticker will be linked to either a prepaid account or your bank account. Fees charged are directly deducted from the linked account whenever your car passes through the booth. To know more, read in depth about what is FASTag.

How Does FASTag Work?

Like we mentioned earlier, whenever your vehicle passes through the Electronic Toll Collection (ETC) booth, it automatically deducts the fees from the linked account. However, understanding of how FASTag works is also essential. With the help of the National Electronic Toll Collection (NETC) department – which is also the acquirer and issuing agency – here’s an insight on how does FASTag work.

Following are 9 steps that will help you understand the functioning –

  1. There is a reader installed at the ETC booth that will capture the FASTag information from your vehicle.
  2. It then sends the acquired data to the issuing agency. The issuing agency is essentially the toll plaza’s banking partners who will process the payment request.
  3. For verification purpose, the bank will forward the received details to NETC.
  4. NETC then validates the FASTag information. NETC will check for information such as vehicle class, registration details, and the status of the FASTag.
  5. In case the FASTag is not registered, it will inform the banking partners that the ID sent for verification is not registered.
  6. In case the FASTag ID is valid, the banking partners will calculate the necessary toll fee and initiate the payment request to the NETC system.
  7. In return, the NETC will initiate a debit request to the issuing banking partner.
  8. Upon successful payment, you will receive a confirmation for the said payment. The same confirmation is sent to the NETC system.
  9. Lastly, when the NETC system receives the confirmation, it further informs the concerned toll plaza, which then allows your vehicle to pass through.

How FASTag Works for Return Journey?

Many people wonder how FASTag functions when returning. Hence, we decided to address the issue of ‘how FASTag works for return journey?’ for once and all.

The system is designed, keeping the return journey of the vehicle in mind. It will pass on the benefits of round trip savings automatically (only if the round trip happens within the specified time). If you are returning within the stipulated timeframe, only the difference amount is deducted. However, note that the stipulated time is different for different toll plazas.

Advantages of FASTag

As we read earlier, the use of FASTag is quite straightforward. It makes your travel hassle-free when passing through the toll plaza. Apart from this, here are a few benefits of FASTag –

  • It Saves Time: The tag reader installed at the toll plaza detects the FASTag on your windscreen and debit the necessary toll fee from your linked account. This allows you to travel without having to stop at the toll plaza for payments.
  • Instant Notifications for Deductions: You will receive SMS alerts on the registered contact number for all the transactions on your FASTag account.
  • Quick Online Payment: You can recharge your FASTag prepaid account online conveniently through your credit cards, debit cards, NEFT, RTGS, and Net Banking.
  • Web Customer Portal: In case, you want to access information regarding your FASTag account by simply visiting the FASTag web customer portal.

To Conclude

For those who travel distances in their vehicle often, FASTag can undoubtedly come in handy. If you too use your car frequently, then along with FASTag, there is another thing that will help provide adequate protection to your precious possession – car insurance.

With the right car insurance plan, you can financially protect your vehicle in case of accidents, theft, or loss incurred due to man-made and natural disasters. In case you are looking for such insurance coverage, do go through our Insurance section.

With Bajaj Allianz car insurance available on Finserv MARKETS, you can benefit from features like round the clock assistance, claim settlement wallets, cashless services at network garages, and so much more. So, why wait? Get your four wheeler insured with us, right away!

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.


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