Introduction

The Indian highway system has seen a technological leap in recent years with the nationwide implementation of FASTag, an electronic toll collection system aimed at reducing traffic congestion and ensuring seamless travel. At the heart of this system lies Radio Frequency Identification (RFID) technology — a wireless communication method that has revolutionized toll collection by eliminating the need for physical stops at toll booths. The recent announcement by Union Minister Nitin Gadkari of a FASTag-based annual pass for private vehicles has once again brought this technology into the spotlight.

What is FASTag?

FASTag is an electronic toll collection system operated by the National Payments Corporation of India (NPCI) in collaboration with the National Highways Authority of India (NHAI). Introduced as a pilot in 2014 and made mandatory in 2021, FASTag uses a RFID-enabled tag affixed to a vehicle’s windscreen. When the vehicle crosses a toll plaza, the system automatically deducts the toll fee from the user’s linked bank account or prepaid wallet, without requiring the vehicle to stop.

What is RFID Technology?

Radio Frequency Identification (RFID) is a wireless tracking technology that uses radio waves to transfer data between a tag and a reader. These systems consist of:

• Tags (attached to the object or vehicle)
• Readers (installed at toll plazas or checkpoints)
• Host computer systems (that store and analyze the collected data)

How RFID Works in FASTag?

In the FASTag system:

• RFID readers installed at toll booths emit electromagnetic signals.
• The passive RFID tag on the vehicle’s windscreen receives these signals and powers up.
• The tag then transmits the stored information (like vehicle ID or account details) back to the reader.
• The toll amount is automatically deducted from the associated payment system.

Types of RFID Tags

1. Passive RFID Tags
   • Do not have an internal power source
   • Activated by the radio waves from the reader
   • Limited range (a few meters)
   • Used in FASTag for cost-effectiveness and durability
2. Active RFID Tags
   • Powered by a battery
   • Can transmit signals regularly or upon activation
   • Longer range (up to 300 feet)
   • Used in industries like logistics and aviation
3. Semi-Passive RFID Tags
   • Have an internal power source
   • Rely on reader’s signals to send data
   • Balance between cost and performance

RFID systems operate on different frequencies:

• Low Frequency (LF): Short-range and slower data transfer
• High Frequency (HF): Moderate range and speed
• Ultra High Frequency (UHF): Long range and fast data transfer

Why in the News? FASTag Annual Pass Announcement

On June 18, 2025, Nitin Gadkari announced a new FASTag-based annual pass priced at ₹3,000 exclusively for non-commercial private vehicles such as cars, jeeps, and vans. Key features include:

• Valid for 200 trips or one year, whichever comes first
• Aimed at resolving long-standing concerns of frequent highway travelers
• Effective from August 15, 2025
• Part of the government’s broader push for digital and contactless travel infrastructure

ANPR-FASTag System (AFS): Barrier-Free Tolling

To further enhance travel efficiency, the Ministry of Road Transport and Highways is preparing to roll out the ANPR-FASTag-based Barrier-Less Tolling System at selected toll plazas.

What is ANPR?

Automatic Number Plate Recognition (ANPR) is a technology that uses high-resolution cameras to automatically read vehicle license plates.

How ANPR-FASTag System Works:

• Combines ANPR cameras with FASTag RFID readers
• Identifies vehicles through number plates and tags
• Enables vehicles to pass without stopping at toll booths
• Ensures toll deduction based on vehicle identification

This is expected to eliminate bottlenecks, reduce travel time, and support the goal of fully automated, contactless toll collection.

Satellite-Based Tolling System (GNSS): Vision Deferred

Earlier, the government had announced plans to adopt a satellite-based tolling system under the Global Navigation Satellite System (GNSS) model.

What is GNSS-Based Tolling?

• Toll calculated based on actual distance traveled
• Requires vehicles to be equipped with an On-Board Unit (OBU)
• Utilizes satellite navigation rather than roadside toll plazas

Why Has GNSS Been Deferred?

• Privacy concerns around individual vehicle tracking and data protection
• India lacks a complete indigenous satellite system for secure implementation
• The system will be launched only after India’s own satellite navigation capability is fully developed

Barcode vs RFID: A Quick Comparison

Benefits of RFID-Based FASTag System

• Reduced Congestion: Eliminates queues at toll booths
• Time & Fuel Efficient: Saves travel time and reduces fuel consumption
• Digital Transparency: Real-time toll deductions and notifications
• Environmental Impact: Minimizes vehicle idling, reducing emissions
• Ease of Monitoring: Authorities can track toll usage and vehicle movement for better planning

Conclusion

The adoption of RFID technology in FASTag represents a significant step towards digitizing India’s transport infrastructure. With the introduction of innovative schemes like the annual pass, the government aims to make highway travel not just hassle-free and efficient, but also aligned with the vision of a smart, tech-driven mobility ecosystem. As India continues to expand and modernize its road network, RFID-powered solutions like FASTag will play a pivotal role in shaping the future of transportation.