Is India saying goodbye to FASTags? NHAI to test new GPS-based tolling

The National Highways Authority of India (NHAI) will be putting in place GPS-based toll collection on various routes across India with an aim to cut toll booth congestion.

The pilot will be tested on select highway stretches before making it operational across the country, Anurag Jain, secretary of Roads Ministry, said. 

Once in place, the Global Positioning System (GPS) tolling will reportedly replace the current FASTag system, which uses Radio Frequency Identification (RFID) technology for toll payments directly from the prepaid or savings account linked to it or toll owner.

The new system, which tracks the precise location of vehicles, has raised some privacy concerns. NHAI says the system is in development phase and post response it will be implemented on a large scale. 

So how exactly does the new system work?
A GPS system cuts queues at toll booths by eliminating the need to wait for FASTag deductions. It will run on new vehicles come which already have built-in GPS devices, older vehicles will need to install them.

The government has mandated that FASTags with incomplete KYC will be deactivated or blacklisted by banks after January 31, 2024.