Big Toll Update: FASTag Ending, New Digital System Starts May 1 – Know How It Works

New FASTag Digital System : India is on the verge of a major shift in its toll collection system. Starting May 1, 2025, the widely-used FASTag will be gradually phased out, making way for a new and more advanced GPS-based toll collection system. This digital transformation is set to revolutionize highway travel across the country, aiming to reduce congestion, eliminate manual toll booths, and improve overall commuter experience.

In this article, we’ll break down everything you need to know about the upcoming changes, how the new toll system will work, what you need to do as a vehicle owner, and the pros and cons of this transition.

What Is Changing from May 1?

The Ministry of Road Transport and Highways (MoRTH) has announced the discontinuation of the current FASTag-based toll system. In its place, a new satellite-based toll collection mechanism will be implemented.

Key Highlights of the Toll System Change:

• FASTag toll collection will stop for all new entries from May 1.
• A GPS-based toll system will become the default.
• Vehicles will be charged based on the distance traveled, not fixed toll plazas.
• Toll booths will be reduced significantly or become obsolete in the long run.
• Government will integrate the system with mobile apps and vehicle dashboards.

How the New GPS-Based Toll System Works

The upcoming toll collection model will be based on Automatic Number Plate Recognition (ANPR) and GPS tracking. This will allow toll charges to be calculated dynamically based on real-time travel data.

How It Works:

• Each vehicle will be fitted with an On-Board Unit (OBU) device.
• The OBU tracks movement via GPS across national highways.
• Toll is calculated based on the number of kilometers driven.
• The amount is deducted directly from linked accounts or digital wallets.
• ANPR cameras will serve as checkpoints to ensure compliance.

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Key Differences Between FASTag and GPS-Based Tolling

Feature	FASTag System	GPS-Based Tolling System
Technology Used	RFID Tag	GPS + ANPR Cameras
Toll Calculation Method	Fixed location-based	Distance-based (per km)
Hardware Requirement	RFID Tag on windscreen	OBU Device inside vehicle
Manual Toll Booths	Still active in many areas	Gradually eliminated
Time Spent at Toll Plazas	2–5 minutes average	Zero – no need to stop
Fraud or Misuse Possibility	Medium – with cloned tags	Low – tracked by GPS
Environmental Impact	Moderate (idle time at booths)	Low (no idling, less congestion)
Maintenance and Upkeep	Needs recharging & updates	Automated updates via software

What Vehicle Owners Need to Do Now

With this major change coming into effect, here are the steps every vehicle owner should take to stay compliant and avoid fines:

Checklist for Vehicle Owners:

• Install OBU Device: Mandatory before May 1 for frequent highway users.
• Register on Official App: MoRTH or NHAI will launch an app for tracking toll history, balance, and distance traveled.
• Link Your Bank or UPI Wallet: To ensure automatic deductions.
• Ensure Number Plate Clarity: ANPR cameras require high visibility.
• Update Vehicle Information: Log into the portal and ensure your details are accurate.

Benefits of the New Toll System

The shift to a GPS-based tolling method is expected to bring a wide range of advantages for both commuters and the government.

Advantages:

• No more waiting at toll booths.
• Transparent billing based on actual distance.
• Reduced carbon emissions due to smoother traffic.
• Real-time monitoring of traffic and toll data.
• Encourages fair usage and cost-effective travel.
• Boosts the adoption of digital payments in transportation.

Challenges and Concerns to Watch Out For

While the new system offers many benefits, it also comes with its own set of challenges and public concerns that need to be addressed.

Key Challenges:

• Installation cost of OBU devices, especially for commercial fleets.
• Privacy concerns with real-time vehicle tracking.
• Network reliability in remote areas.
• Initial confusion during the transition period.
• Possible errors in GPS readings or billing.

Concern	Public Feedback	Government’s Proposed Solution
High Installation Cost	Needs subsidy or free rollout	Likely to be subsidized by government
Data Privacy and Surveillance	Fear of misuse of tracking data	Data to be anonymized & encrypted
Transition Hassles	Confusion about switching systems	24×7 helplines and awareness drives
Rural Connectivity	Worry about GPS signals	Offline syncing available
Billing Accuracy	Potential overcharging issues	Real-time correction & dispute portal

Comparison Table: FASTag vs. New GPS Tolling

Parameters	FASTag	GPS-Based Toll System
Year Introduced	2016	2025
Primary Goal	Reduce cash transactions	Eliminate toll booths entirely
Time Efficiency	Moderate	Very High
Infrastructure Cost	Medium	High initially, low later
User Experience	Often delayed due to queues	Seamless and automatic
Integration with Maps	No	Yes (Live tracking)
Manual Interference	Sometimes	Very Minimal
Dispute Resolution	Through FASTag support	In-app support and quick claims

When Will the Rollout Be Fully Complete?

The government has planned a phased rollout of the new toll system:

• Phase 1 (May–July 2025): Launch in metro and Tier-1 cities.
• Phase 2 (August–October 2025): Expansion to national highways and expressways.
• Phase 3 (Nov 2025–March 2026): All major roads across the country to be covered.
• Full Deactivation of FASTag: Expected by March 31, 2026.

What Happens If You Don’t Comply?

Non-compliance with the new GPS tolling system may result in fines, toll overcharges, or vehicle blacklisting on highways.

Possible Penalties:

• ₹500 fine for traveling on highways without a registered OBU.
• Additional charges for manual toll entry at booths.
• Higher toll charges for non-digitized vehicles.
• Suspension of highway access in some regions.

The shift from FASTag to a GPS-based toll collection system marks a significant leap forward in India’s transportation infrastructure. While the transition may bring initial confusion, it promises a more efficient, transparent, and eco-friendly way of collecting tolls across the country. Vehicle owners are advised to stay updated, comply with the guidelines, and get the required equipment installed before May 1 to ensure uninterrupted travel and avoid penalties.