NETC FASTag

NETC FASTag is the National Electronic Toll Collection system in India, which uses RFID (Radio-frequency identification) technology for automatic toll payments on highways. It was jointly developed by NPCI and the National Highways Authority of India (NHAI) to modernize toll collection and reduce congestion.

The system revolves around the FASTag, a small RFID tag that is affixed to a vehicle, allowing toll plazas to deduct toll charges digitally from a prepaid account as the vehicle drives through, without needing to stop.

Structure of NETC FASTag:

FASTag (RFID Tag)

FASTag is a passive RFID sticker typically placed on the windshield of vehicles. It contains a uniquely coded chip and antenna. When the vehicle approaches a toll plaza, a roadside RFID reader scans the FASTag. The tag is linked to an account or wallet from which toll fees are deducted. FASTag uses Radio Frequency Identification in the UHF band, following ISO standard protocols for tolling, so it can be read from a short distance as the car passes through.

Prepaid Account/Wallet

Each FASTag is associated with a prepaid account. This account could be issued by various banks or toll payment providers (about 20+ certified FASTag issuers, including SBI, ICICI, HDFC, Paytm, etc.). Vehicle owners “recharge” this account (similar to a prepaid mobile phone) with money. Alternatively, FASTag can also be linked to one’s bank account for auto-debit. When a toll is collected, the balance reduces accordingly. This prepaid model ensures tolls are paid instantaneously.

Toll Plaza Infrastructure

Toll plazas have been equipped with RFID readers, cameras, and a local plaza server. As a vehicle passes, the reader captures the FASTag ID and the system identifies the vehicle class (car, truck, etc.) usually via the tag details or ANPR cameras reading the license plate. The appropriate toll fee is determined and the system sends an online debit request.

NPCI’s NETC Switch and Mapper

NPCI operates the central clearing house for NETC (National Electronic Toll Collection). There is a NETC Mapper – a database linking each FASTag ID to the issuer and vehicle details. When a toll transaction occurs, the plaza’s acquiring system (often managed by NHAI’s partner or a bank) sends the transaction to NPCI’s switch. The switch identifies which bank’s FASTag it is (via the tag ID in the mapper) and forwards the debit request to that bank (issuer). The issuer verifies the account, debits the toll amount, and sends a confirmation back. NPCI’s system then confirms to the toll plaza that payment is received so the barrier can lift (this happens in a few seconds). NPCI later performs interoperable settlement: toll operators get the funds collected from various tags, and issuers are charged for their tagholders’ tolls. All transactions from all toll plazas nationwide are processed centrally, enabling one FASTag to work everywhere.

NHAI & IHMCL

NHAI (through its subsidiary Indian Highways Management Company Ltd – IHMCL) is responsible for implementing the physical infrastructure and managing toll operators. They mandated all national highway toll plazas to integrate with NETC. The partnership between NPCI and NHAI ensures technology and policy go hand in hand: NPCI handles the electronic payments backbone, and NHAI ensures all toll booths are equipped and FASTag is enforced.

Prepaid Toll Payments – How FASTag Works?

Once a vehicle has a FASTag, approaching a toll becomes a drive-through experience:

1. As the vehicle enters the toll lane, signage indicates FASTag lane. The RFID reader mounted overhead or at the side scans the FASTag.
2. The toll plaza system pings the central NETC system with the tag ID and toll amount. Instantly, the linked account is checked. If the balance is sufficient, the amount is deducted from the prepaid wallet in real-time.
3. The system triggers the barrier to open (or green light) and the vehicle passes without stopping. An SMS notification is typically sent to the tag owner’s mobile phone indicating toll deducted and remaining balance.
4. If the tag is low on balance or blacklisted (e.g. reported lost), the system may not deduct, and the barrier remains closed, requiring the vehicle to pay cash (with penalty, as per rules).
5. The entire transaction happens within moments, enabling vehicles to maintain near-normal speed through the plaza (some slowdown might occur, but much less than stopping to pay cash).

Benefits and Adoption

FASTag brings multiple benefits:

• Time & Fuel Savings: Vehicles no longer stop and idle at toll booths, which significantly cuts waiting time and fuel consumption. This also lowers emissions from idling. According to government reports, FASTag has reduced average halt time at tolls dramatically.
• Convenience: Users don’t need to carry cash or worry about exact change for tolls. All tolls are auto-paid from one account. They can use one tag across all highways in India (interoperability).
• Digital Transparency: Toll collections become transparent and leakage-free (cash pilferage is curbed). Users get a digital record of tolls paid.
• 98% Penetration: As of late 2025, FASTag usage is ~98% on highways, meaning almost all vehicles passing tolls use it. Over 8 crore FASTags have been issued, indicating widespread adoption across private and commercial vehicles.
• Mandate: Since Feb 2021, FASTag has been mandated for all vehicles on national highways. Those without FASTag or with non-functional tags must pay toll at double rates in cash. This policy push quickly raised adoption. Additionally, from 2023, there are incentives like slightly lower toll if paying via UPI at plazas, but higher if cash (to discourage cash usage).
• Integration with State Highways & Parking: FASTag is also being extended to many state toll roads and even parking lots/entrances to ease payment there with the same tag.

NPCI-NHAI Partnership

NPCI’s technology and NHAI’s infrastructure oversight together delivered a unified toll solution:

• NPCI ensures the payment network (NETC) is robust. It processes millions of toll transactions daily, switching them to the correct issuer in sub-second times. It also manages disputes (e.g., if a wrong toll deduction occurs, NPCI has frameworks with banks to address it).
• NHAI standardizes the plaza equipment and works with concessionaires (toll operating companies) to integrate with NETC. They’ve also launched the Rajmargyatra app for highway users to manage FASTag passes and grievances.
• Together, they implemented schemes like monthly passes: e.g., an Annual Pass FASTag for frequent users at a one-time payment for unlimited use of certain tolls.
• The success is evident by near-universal FASTag acceptance and the significant revenue going cashless. Toll revenue collection has increased due to plugging leaks and better compliance.

RFID Technology

FASTag uses passive RFID which does not need an internal power source; it’s energized by the radio signal from the reader. The tag has a unique ID linked to vehicle data (vehicle class, etc.) in the system. The RFID tech allows reading even when the vehicle moves (although for reliability, there is a barrier system in current tolls, but pilot tests are on for free-flow tolling using RFID and ANPR cameras, eliminating barriers entirely).

The technology is similar to what’s used in other countries for highway tolling (e.g., E-ZPass in the US). However, India achieved something remarkable by making FASTag interoperable nationally – one tag for all toll plazas, regardless of which entity operates the road. NPCI’s NETC standards made this possible, whereas earlier attempts were localized.