- By Kanika Sachdeva
- Thu, 04 Dec 2025 05:08 PM (IST)
- Source:JND
FASTag-Based Electronic Toll Collection: In a significant step to ensure a seamless flow of traffic and enhance toll efficiency, the Indian government has announced that the new barrier-free electronic toll collection system (ETCS) will replace the current toll collection system within a year. Speaking during Question Hour in the Lower House, the Union Minister of Road Transport and Highways (MoRTH), Nitin Gadkari, said that the existing toll system will be phased out within a year, and in its place, the new toll collection system will be implemented nationwide, enabling vehicle owners to make payments without stopping, slowing down, or waiting.
Gadkari further stated that the new electronic system has already been implemented at 10 locations, and more plazas will be upgraded within a year. This represents a significant leap forward in digitising India's toll collection infrastructure.
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National Electronic Toll Collection System: What You Should Know
The National Electronic Toll Collection (NETC) system, an initiative of the National Payments Corporation of India (NPCI), is a unified, interoperable platform for electronic toll payments, streamlining transactions and dispute resolution through a centralised clearing house.
At the heart of the NETC programme lies FASTag, an RFID (Radio Frequency Identification)-based device securely attached to a vehicle's windscreen, facilitating automatic toll payments from the linked account without requiring vehicles to stop at the toll plaza. And FASTag, with its unified framework, empowers commuters with the flexibility to pass through any toll plaza, anywhere in the country, using a single, convenient tag.
With the new electronic toll collection system, the government of India intends to mitigate congestion, reduce emissions, and avoid delays. Furthermore, non-compliance with toll payments and non-FASTag cases will be managed through electronic notifications or e-challans, with outstanding amounts incurring penalties and possible FASTag suspension.
