Understanding Fastag: Overview, Working, Benefits, and Bank Charges

Understanding Fastag: Overview, Working, Benefits, and Bank Charges


Maybe everyone is using Fastag. It is a simple and revolutionary electronic toll collection system. It is an online platform to pay the tolls on the highways and expressways across India. It is officially launched by the National Highway Authority of India (NHAI) in collaboration with various banks and financial institutions. It might be known that almost every bank provides fast services. But in reality, the Fastag is managed by the National Highway Authority of India (NHAI) only. Fastag leverages RFID (Radio Frequency Identification) technology, which makes it a cashless and seamless option to make toll payments.

Fastag is an electronic toll collection system, where you do not need to pay in cash. It is a very small, passive RFID tag installed on the vehicle’s windscreen. It is a sticker form which is easily pasted on the windscreen. For scanning, many RFID readers are installed at toll booths to make the RFID tag installed on the vehicle’s windscreen.

How Fastag Works?

For fastag system, there are many key components used like

  • RFID Tag

  • RFUI Reader

  • Central Fastag System

  • Linked Account

A seamless interaction between the  RFID tag, RFID reader, and the central Fastag system makes Fastag work.

  • To use the fastag, the user affixes the RFID tag to the vehicle’s windscreen. There are many banks and financial institutions that provide RFID tags, which will be discussed later. This is a unique tag, which contains a unique identification number encoded in its microchip.

  • When a Fastag vehicle approaches a toll plaza, this RFID tag comes in contact with the RFID reader installed in the toll booth.

  • When an RFID reader detects the Fastag, it captures its unique identification number and transmits this information to the central Fastag system for processing.

  • Then the central Gastga system identifies the identification number and retrieves the corresponding Fastag account linked to the vehicle. After identification, it debits the appropriate toll amount from the user’s linked account. It is a real-time process, which is done in seconds only.

  • When the appropriate amount is deducted at the toll booth,  the central Fastag system generates an electronic toll transaction record. Moreover, send an instant SMS notification to the registered mobile number.

Benefits of Fastags

There are many benefits of launching and using the Fastags. Let’s discuss some of them-

  • Convenience and Time Saving: It is very convenient by eliminating the need for cash role at the toll plaza. Vehicles can pass the toll booth within seconds. It saves a lot of time and reduces traffic flow and shorter travel times.

  • Cashless Transaction: The main aim behind launching the fastag is to digitalise. Cashless transaction is the aim benefit of using Fastag. Using digital transition reduces financial inclusion as well as the use of physical currency. It is also a step towards digitalisation by the government.

  • Enhanced Transparency: Fastags bring greater transparency in the toll collection process. Now, it is completely online and digital, which reduces fraud. Toll operators can track the accurate revenue and reduce the risk of revenue leakage. Fastgas increase the trust in the toll collection system.

  • Cost Saving: Fastags result in significant cost savings on the long route. Paying with fastag charges you half at the toll booth as compared to the offline payment. It is an initiative from the government to make the customer aware of using only fastag and save their money.

  • Improve Toll Management: Fastags enables toll operators to manage toll plazas more efficiently. All transaction will be done online. There is no manual interaction needed, which is better to record and manage them properly. In addition, it is also good for the users because they can check their toll amount whenever they want.

  • Safe and Secure: Fastags are safe and secure for the toll plaza. It reduces the risk of accidents and theft associated with cash transactions at toll plazas. It will be done online. So, there is no risk of any attack.

Various Banks Fastag and Their Charges

Fastags are provided by several banks and financial institutions with the collaboration of the government. There is a list of Various banks and financial institutions that serve as authorized issuers of FasTags. Remember, each bank charges different fees.


  • Joining Fee: Rs. 100 (including taxes)

  • Security Deposit: Rs. 100 for cars, jeeps, vans, and similar mini-light commercial vehicles.


  • Joining Fee: Rs. 99.12 (including GST)

  • Security Deposit: Rs. 200 for cars, jeeps, and vans

  • Threshold Amount: Rs. 200

SBI (State Bank of India)

  • No-tag fees or security deposits for cars, jeeps, vans, Tata Aces, and other compact light commercial vehicles.

  • A minimum balance of Rs. 200 is required for FASTag activation.

Axis Bank

  • Issuance Fee: None

  • Re-issuance Fee: Rs. 100 (inclusive of all taxes)

  • Security Deposit: Rs. 200 for cars, jeeps, and vans

Bank of Baroda

  • One-time Fee: Rs. 150 + GST

  • Security Deposit: Rs. 200 for cars, jeeps, and vans

  • Threshold Limit: Rs. 200

Canara Bank

  • Issuance and Re-issuance Fee: Rs. 100

  • Convenience Fee for Online Reload: Actual cost + Rs. 10.00

  • Security Deposit: Rs. 200 for cars, jeeps, and vans

  • Threshold Amount: Rs. 100


  • Re-issuance Fee: Rs. 100 (including taxes)

  • Tag Deposit: Rs. 200

  • No threshold amount required

Kotak Mahindra Bank

  • Joining Fee: Rs. 100 for VC4, nil for other vehicle classes

  • Tag Deposit: Rs. 200

  • No charges for re-issuance, and no threshold amount is applicable

IndusInd Bank

  • One-Time Tag Joining Fee: Rs. 100

  • Reissuance Fee: Rs. 100

  • Security Deposit: Rs. 200

  • Threshold Amount: Rs. 200

PNB (Punjab National Bank)

  • Security Deposit: Rs. 200 for cars, jeeps, and vans

  • Threshold Amount: Rs. 100

  • Replacement Fee: Rs. 100

Airtel Payments Bank

  • One-time Fee: Rs. 100 (including GST)

  • Tag Joining Fee: Rs. 99.99 (including all applicable taxes)

  • Re-issuance Fee: Rs. 99.99 (including all applicable taxes)

  • Security Deposit: Rs. 150 for cars, jeeps, and vans


  • Tag Issuance Fee (One-time): Rs. 100 (inclusive of GST)

  • Tag Reissuance Fee: Rs. 100 (inclusive of GST)

  • FASTag Security Balance: Rs. 250

Note: Recently, Paytm Fastags is not working.

Also Read:-

GST Portal: How to Register & Login Online in India | Simplified Guide


1. How does Fastag work?
– Fastag uses RFID technology for cashless toll payments. A small RFID tag on the vehicle’s windscreen communicates with readers at toll booths, deducting toll charges from the linked account.

2. Why should I use Fastag?
– Fastag offers convenience by eliminating the need for cash payments at toll booths, saving time and reducing traffic congestion. It also promotes digital transactions and enhances transparency in toll collection.

3. How do I get a Fastag?
– Fastags are available through various banks and financial institutions. Simply visit their website or nearest branch, fill out the application form, submit required documents, and get your Fastag issued.

4. Are there any fees associated with Fastag?
– Yes, different banks charge varying fees for Fastag issuance, re-issuance, and security deposits. Fees may include joining fees, security deposits, and minimum balance requirements.

5. Can I use Fastag on all toll booths?
– Fastag is accepted at all national highways and select state highways across India. However, it may not be valid for toll plazas operated by local authorities or those without electronic toll collection facilities.

6. How do I recharge my Fastag account?
– You can recharge your Fastag account online through the website or mobile app of your issuing bank. Simply log in to your account, select the recharge option, and follow the instructions to add funds.

7. What happens if my Fastag balance is low?
– If your Fastag balance is insufficient to cover the toll charges, you may face penalties or restrictions on toll plaza access. It’s essential to maintain an adequate balance to ensure seamless toll payments.

8. Can I transfer my Fastag to another vehicle?
– No, Fastags are vehicle-specific and cannot be transferred between vehicles. Each vehicle must have its own Fastag registered and affixed to the windscreen.

9. What should I do if my Fastag is lost or damaged?
– In case of loss or damage to your Fastag, contact your issuing bank immediately to request a replacement. They will guide you through the process of re-issuance and provide a new Fastag for your vehicle.

10. Is Fastag safe and secure to use?
– Yes, Fastag transactions are safe and secure, as they are encrypted and processed through a centralized system. Fastag also reduces the risk of accidents and theft associated with cash transactions at toll booths.

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