The new FASTag Annual Pass, introduced by Union road transport and highways minister Nitin Gadkari on June 18, represents a qualitative improvement to India’s existing highway toll collection system. It will save the time and effort of frequent users of national and state highways in the country, and therefore, it is a welcome initiative. The concept of FASTags, which utilises Radio Frequency Identification (RFID) technology for making cashless toll payments, was introduced by the Narendra Modi government in 2016. It allowed the vehicles to pass seamlessly through the toll plazas, making the users save on time as well as fuel. Following the dramatic improvement in the toll collection process, the government made FASTags mandatory from January 1, 2021, giving a big boost to the issuance of RFID cards. The number of FASTags increased phenomenally from 2.49 crores in January 2021 to 10.98 crores in May 2025, which validates people’s adoption of the new toll payment system. Though the people have adopted the RFID toll payments, the requirement to keep wallets adequately funded has created problems for frequent travellers. If they forget to add funds to the wallet, drivers could get stranded at the toll plaza, resulting in traffic congestion and a waste of time. The FASTag Annual Pass is expected to address this problem as it would be valid for 200 trips or for one year, whichever is the earliest. The average toll paid by a person is Rs 50 per trip. As the average toll paid for 200 trips would be Rs 10,000, the FASTag Annual Pass could also help people to save up to Rs 7,000 annually. On the flip side, however, it would not be of any great help for people who use highways occasionally and will not be acceptable for airport toll charges amongst others. If the government makes it acceptable for all types of road-related payments, including parking fees, it would become a truly ubiquitous card.
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