FASTag to Power More Than Tolls: Now May Be Used for Parking, Charging, and Insurance Payments

Updated: 26-06-2025, 09.40 PM
FASTag Annual

New Delhi: The Government of India is planning a significant expansion of FASTag usage beyond toll plazas, aiming to make it a multi-utility payment tool for parking, EV charging, and even insurance payments. This initiative is designed to promote ease of travel, transparency, and digital adoption, all while reducing operational hassles on roads.

FASTag Annual

FASTag’s Growing Utility

Currently, FASTag enables seamless toll payment at 1,728 toll plazas across the country, including 1,113 national highways and 615 state-level routes. According to the latest data, 98.5% of all toll tax collection now happens through FASTag, highlighting its massive adoption. So far, over 11.04 crore FASTags have been issued by 38 partner banks across India.

What’s Changing?

The Ministry of Road Transport and Highways (MoRTH), along with the Indian Highway Management Company (IHMCL), recently organized a workshop with leading fintech companies to explore the expanded use cases for FASTag. The workshop focused on:

  • Using FASTag for parking fee deduction at public and private lots

  • Enabling EV charging station payments via FASTag

  • Facilitating insurance premium payments directly through the FASTag wallet

  • Streamlining grievance redressal and compliance systems

These measures are aimed at boosting convenience, minimizing fraud, and simplifying digital payments related to vehicular travel and maintenance.

Future-Ready Tech: Multi-Lane Free Flow Tolling

One of the most ambitious plans discussed during the workshop was the introduction of multi-lane free flow tolling. This futuristic tolling system will eliminate the need for physical toll plazas. Instead, cameras and ANPR (Automatic Number Plate Recognition) technology will track vehicles and deduct tolls automatically via number plates, removing the need for halts and congestion.

The government is seeking active collaboration from fintech companies to build this technology and drive mass adoption.

Why This Matters

The broader application of FASTag will likely enhance:

  • Transparency in financial transactions

  • Efficiency in urban mobility and vehicle management

  • Digital infrastructure aligned with the government’s Digital India mission

It also hints at the eventual creation of a unified vehicle wallet, which can handle not just tolls but all expenses linked to driving — from charging and parking to insurance and more.

Conclusion

FASTag is no longer just a toll payment system — it’s poised to become a universal vehicle wallet. With technology evolving and adoption increasing, the future of road travel in India is likely to be smoother, faster, and more digital.

Author Profile

Kuldeep Singh Chundawat
Kuldeep Singh Chundawat
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.

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