Here’s How FASTag - the Contactless Digital Payment Tag Works
The Indian government has made it mandatory from 1 Dec, 2019 to use a contactless payment card for cash-free and faster transactions at National Highway toll plazas across the country. All new four-wheelers will be expected to have FASTag devices fitted by car manufacturers on the front windscreen. Currently, this program is active across 450+ toll plazas across the country and the remaining will be covered soon for the mandate implementation by the Govt. Of India. The notice follows an amendment by central government to the 1989 Central Motor Vehicle Rules according to the powers conferred on it by Motor Vehicle Act, 1989. Let’s take you through a FASTag overview and understand everything about it, in detail.
FASTag Overview
The National Payment Corporation of India (NPCI) has established the National Electronic Toll Collection (NETC) system to meet the Indian market’s electronic tolling requirements.
FASTag is a device using Radio Frequency Identification (RFID) technology to make toll payments directly without stopping the car at toll booths. The tag is attached to the windscreen of the vehicle and allows the customer to make toll payments straight from their FASTag linked account. The device has a validity of 5 years during which you can recharge or top-up the account as per your requirements.
RFID is a wireless communication standard that reads data encoded in the bar or tag with the help of a reading device. The tag has an antenna and an integrated circuit that creates a wireless mode of communication. FASTag is a type of tag which will only respond when a reader is reading the data. Every tag and car pairing has a unique identification number that is encoded in the bar.
FASTag offers smooth vehicle movement across all National Highway toll plazas that will help you avoid long queues and traffic jams.
FASTag Benefits:
• Ease of payment: You don’t have to worry about keeping change or any cash at all for tolls
• Non-stop vehicle movement reduces fuel costs and saves time
• FAstag Online recharge facility: You can use online facilities like internet banking or credit and debit cards for recharge or direct payment
• SMS alert for all toll payments and low account balance
• Validity: 5 years
• Saves paper because no receipts are generated, helping save the environment
• No or minimum toll hassles
This FASTag overview is a clear indicator that this device offers many advantages.. The government is helping our movements make smooth by providing such facilities. Although benefits are essential for us to know, it is equally important to understand how the FASTag payment works.
FASTag ProcessingOverview
Various banks, such as AXIS bank, are offering the card apart from a few online payment partners. It is only feasible to buy FASTag from a bank like Axis, that provides the tag at lower costs and offers cashback up to 2.5% for the year 2019-20. You can recharge the tag anytime via the FASTag app using online modes of payment like credit, debit, or net banking.
After buying the tag, you must activate it for your use and then link your bank account for hassle-free payments. Although it is only a FASTag overview, we must understand the procedure before using it.
Here’s how FASTag debits payment at tolls from your account:
• RFID is mounted on the front windscreen of the car
• The RFID reader reads a unique identification number encoded in the tag upon reaching the toll plaza
• UID is then sent to the central system for validation
• Once the acquiring system completes the validation, which is then sent to NETC Switch
• NPCI then routes the transaction to the issuer bank where the transaction is validated, and the amount is deducted from the account.
Right after, you will receive a notification on your registered number for the same and the remaining amount in your linked prepaid account.
FASTag: The Contactless Digital Payment Method at Our Ease
The process doesn’t involve any cash or significant time consumption. There are separate lanes for cars that use the tag, for quick traffic movement saving your time and fuel. Each vehicle has its unique identification number, so if you own more than one vehicle, you must buy separate tags for your cars, keeping in mind this FASTag overview.
The use of FASTag was only voluntary earlier, but now the government has passed a notice after which it’s become mandatory for every four-wheeler. It is only for our convenience and smooth movement because no one likes to stand in those long toll queues.
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