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To speed up the adoption of digital payments at toll plazas in the country, the Centre said that vehicles without a valid or functional FASTag entering user fee plazas will face a steeper penalty for cash payments.
In a statement, the ministry of road transport and highways said that, under the new rules, non-FASTag users will be charged twice the applicable user fee if the payment is made in cash, but those opting for the Unified Payment Interface (UPI) will pay only 1.25X the standard fee for their category.
For instance, if the standard toll for a vehicle using a FASTag is INR 100, the fee rises to INR 200 if settled in cash, but only INR 125 when paid via UPI. The change is made by amending the National Highways Fee (Determination of Rates and Collection) Rules, 2008, and is directed at eliminating cash transactions at highway tolls, thereby streamlining the user fee collection process, increasing transparency, and improving commuting experiences for users. The fee structure will be implemented across the country from November 15, 2025.
According to the government, India currently has about 80 Mn FASTag users as of now. The electronics toll payment technology was made mandatory for all vehicles on January 1, 2021.
After allowing FASTag users to recharge their account through any BHIM UPI app in 2019, the RBI brought auto-replenishment of balances in FASTag under its e-mandate framework in 2024.
The feature allows users to set a threshold on their FASTag account. If the balance goes below that threshold, the FASTag wallet automatically gets recharged via the linked prepaid wallet or saving account.
Additionally, FASTag can also be used to make digital payments at an EV charging facility.
Launched in 2016, FASTag is an electronic toll collection system run by NHAI, which deploys radio frequency identification (RFID) technology for making toll payments directly from the prepaid or savings account linked to it.
FASTag services can be bought via various apps such as MyFASTag app, Mobile Pay, FIRSTforward, and multi-purpose apps like Park+ and Acko.
The post Centre Unveils New Highway User Fee Collection Rule To Promote Digital Payments appeared first on Inc42 Media.
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