MoU for sale of FASTag
A memorandum of understanding (MoU) has been signed between Indian Highways Management Company Limited (IMHCL) and leading Oil Marketing Companies (OMCs) like BPCL, HPCL and IOCL for sale of FASTags through their petrol pumps.
FASTag is an electronic toll collection system operated by the National Highway Authority of India (NHAI). FASTag enables automatic deduction of toll charges and lets you pass through the toll plaza without stopping for the cash transaction.
FASTags are linked to a prepaid account from which the applicable toll amount is deducted automatically. FASTag employs Radio-frequency Identification (RFID) technology.
Features of the FASTag
The features of the FASTag are:
- FASTag is bank neutral and can be linked to customers’ choice of bank accounts.
- Together with providing flexibility and convenience to the users, FASTag is also user-friendly as there will be no requirement of fulfilling KYC obligations.
- FASTag apps provide provides real-time recharge of any FASTag through UPI by linking customer’s bank account with IHMCL FASTags.
There are plans to expand the FASTag to allow purchasing fuel at petrol pumps in future.
Radio-frequency Identification (RFID) technology
Radio-frequency Identification (RFID) technology uses electromagnetic fields to automatically identify and track tags which are containing electronically-stored information.
A two-way radio transmitter-receivers called interrogators or readers send a signal to the tag and read its response. The RFID reader transmits an encoded radio signal to interrogate the tag. The tag receives the message and then responds with its identification and other information.