FASTag Reforms – 2024 & 2025

Why in News?

The Rs 3,000 FASTag Annual Pass, effective from August 15, 2025, offers private vehicles hassle-free travel on National Highways and Expressways for one year or 200 trips. It reduces toll costs and can be activated on existing FASTags via official apps.

Description:

1.    ‘One Vehicle, One FASTag’ Initiative:

  • Launched by: National Highways Authority of India (NHAI)
  • Date: Announced in January 2024
  • Objective: To prevent misuse of FASTag by:
    • Linking multiple FASTags to a single vehicle
    • Using a single FASTag for multiple vehicles
  • Mandate: All users were required to complete KYC (Know Your Customer) verification by January 31, 2024, failing which FASTags would be deactivated.
  • Background: Launched after reports of KYC violations and RBI norm breaches, affecting the National Electronic Toll Collection (NETC) system.

2.   FASTag Annual Pass Scheme

  • Announced by: Ministry of Road Transport and Highways
  • Date: Announced on June 19, 2025; effective from August 15, 2025
  • Applicable to: Only non-commercial private vehicles (cars, jeeps, vans)
  • Cost: ₹3,000 per vehicle
  • Validity: Valid for 1 year or 200 toll trips, whichever comes first
  • Benefit:
    • Reduces average toll cost to 15 per trip
    • Estimated annual savings of 7,000 per user
  • Platform for Activation: Can be activated via the Rajmargyatra mobile app or NHAI website
  • Note: Not valid on State Highways, municipal roads, or for commercial vehicles. Misuse leads to immediate deactivation.
How Electronic RFID toll Collection Works (FASTag):

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