No Fastag? Pay The Double Toll Fee From Dec 1, 2019

Nov 21, 2019 By Admin

The Ministry of Road Transport and Highways has made FASTAG mandatory for all vehicles from 1 December 2019 under the National Electronic Toll Collection (NETC) program for Electronic Tax Collection(ETC). Toll payment from 1 December will be made only through FASTAG and vehicles and those not having Fastag will be charged double for crossing the toll booth.

RFID Tags were first introduced in Italy in 1989, making Italy the first country in the world to introduce RFID Tags. Japan introduced e-tag system in 2001, Australia introduced it in 2007, USA introduced Electronic Tax Collection (ETC) System in 2012. With India introducing in 2019, we are far behind the developed but it is a good move as it will be a great boost to our Transportation Sector with reducing wastage of time spent on toll booths.

The RFID tag pasted on the top left of vehicle's windshield has the unique identity number allotted. Due to this, toll charges are automatically deducted from the prepaid RFID account of the users according to the class of the vehicle, which works as an online wallet and in the same way as we put money in any other online wallet, top-up can be done in RFID Fastags. Apart from this, from March 2020, 2.5 percent cash back will also be started.

The Radio Frequency Identification (RFID) or Fastag, which allows you to pass through easily at any toll plaza without paying cash. Essentially the biggest purpose of a Fastag is to cut travel time by eliminating the time it takes at toll-booths. It is really beneficial for commercial vehicles that cover long distances or thousands of kilometers. If they use Fastag, they do not need to queue at toll-booths and this can save them as a day which not only reduces their fuel expenses and labor wages, but also provides services at a considerable cost.

Quick Facts:
• In order to use this, you will be asked to provide the base details such as name, contact number, vehicle registration number and a copy of RC.
• The Order initially applies to tolls on national highways and the state toll plaza would still need some more time to catch up due to some reactions and agreements and they would be applied to toll booths in the states from March next year.
• Those who want to take Fastag for their vehicle can get it through designated toll plaza locations, official service stations of their vehicles and service providing banks.
• The government is partnering with several banks and financial institutions to provide Central Clearing House (CCH) Services and RFID based FASTag through its franchisees at sales counters / points near the toll plaza.
• The National Highway Authority of India (NHAI) is also retailing Fastag online on the issuing bank and Indian Highway Management Limited (IHMCL) websites.
• In November 2016, the Indian government made it mandatory for all new vehicles to feature Fastags on their windscreen and automobile manufacturers were asked to provide Fastags.
• Speaking of older vehicles, they can get Fastags mounted on the windscreen by their respective car dealers.

Published by : RAKESH KANWAR & CO.
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