Fastag

Tax Glossary Definition

Fastag

FASTag – FASTag is a device issued by banks and linked to a prepaid or savings account that enables automatic, cashless toll payments on national highways in India. It works under the National Electronic Toll Collection (NETC) system, introduced by the National Payments Corporation of India (NPCI). FASTag uses Radio Frequency Identification (RFID) technology to deduct toll charges directly from the linked account as the vehicle passes through a toll plaza. This eliminates the need to stop and pay cash, significantly reducing waiting times and improving traffic flow. Key Features: Linked to a prepaid wallet or bank account. Reloadable online through UPI, net banking, or mobile apps. Provides SMS alerts for toll deductions and low balances.

Example: A vehicle equipped with FASTag passes through a toll plaza on NH-48, and the toll charge of Rs 150 is automatically deducted from the linked account without stopping the vehicle.

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