The Government of India has embarked on an ambitious plan for building India’s highway network through various phases of the National Highways Development Project (NHDP). This underlines the need for large scale tolling of the highways. Tolling has come to be associated with delays at collection points and congestion at toll plazas. The delays negatively impact the operational efficiency of the improved network and thus neutralize the benefits of the improvement of highway infrastructure. Government has, therefore decided to adopt Electronic Toll Collection system across India’s National Highway network, which would enable toll to be collected electronically from vehicles at a toll plaza while the vehicle is in a motion.
In the recent past, Electronic Toll Collection (ETC) has been the single largest digital intervention in the transport sector. The FASTag program, a scheme for nationwide non-cash toll payments was started in April 2013, wherein the first ETC system was put up on Mumbai-Ahmedabad Highway with the help of ICICI bank, as a closed loop implementation. Due to the limitations of closed loop system, the program didn’t create much inroads and saw a penetration of just 2-3% in the first two years of operation. With this background National Highway Authority of India (NHAI) approached NPCI to create an open loop system with multiple FASTag Issuer Banks. NPCI launched the National Electronic Toll Collections (NETC) program in December 2016.
With the launch of National Electronic Toll Collection (NETC) program, NPCI along with NHAI & IHMCL has created one of the most efficient interoperable ETC program covering all the four important pillars- issuers, acquirers, central clearing house (NPCI) and plaza operators (NHAI/concessioners).
National Electronic Toll Collection (NETC) system enables the electronic payment of highway tolls. It provides an electronic payment facility to customer to make the payments at national, state and city toll plazas by identifying the vehicle uniquely through a FASTag.
NETC offers an interoperable four party nationwide toll payment solution including clearing house services for settlement and dispute management.
Interoperability, as it applies to National Electronic Toll Collection (NETC) system, encompasses a common set of processes, business rules and technical specifications which enable a customer to use their FASTag as payment mode on any of the toll plazas irrespective of who has acquired the toll plaza.
The Government is currently giving a cashback of 2.5% for the FY 2019-2020 as an incentive for using FASTag to the FASTag customers. NHAI is closely working with the toll plaza operators to improve the necessary infrastructure and also bringing in new regulations to impose penalty/fines for non FASTag customers entering dedicated FASTag lanes.
Offers an interoperable secure framework capable of use across the country
It enhances transparency and efficiency in processing transactions
Electronification of retail payments
Decreases air pollution by reducing the congestion around toll plaza
Diminishes fuel consumption
Cuts cash handling
Increases audit control by centralizing user account
FASTag is a RFID passive tag used for making toll payments directly from your linked prepaid or savings/current account. It is attached to the windscreen of your vehicle and it enables you to drive through toll plazas without stopping for any toll payments. The toll fare is directly deducted from the linked account of the customer. FASTag is also vehicle specific and once it is fastened to a vehicle, it cannot be transferred to another vehicle. You can purchase it from any of the NETC Member Banks. If the device is linked to the prepaid account, then it needs to be recharged/ topped-up as per your usage. If adequate balance is not maintained, your gadget could get blacklisted at the toll plaza. In such a scenario if you travel via a toll plaza without recharging then you won't be able to avail the NETC services and would be charged the toll fare through cash.
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Off-line; near real time transaction processing as the toll plazas send the transactions within 10 minutes interval
NETC ecosystem backs numerous issuers and multiple acquirers. What does it mean? Tag issued by any member bank is accepted at all toll plaza (under NETC program) obtained by you in a safe and secure manner.
You can link your FASTag to your existing savings/current account or to a prepaid account depending on what your bank offers. For opening a prepaid account it is not compulsory to have a present relation with the issuer bank.
Can be issued by member banks, authorized for NETC Program.
FASTag enables electronic payments at the toll plaza while your vehicle is in motion
You can travel without stopping at the toll plaza by using the FASTag. Thus it decreases congestion at plazas and saves fuel, thus decreasing travel time.
You can recharge your account online via issuing member banks portal using UPI/Credit Card/Debit Card/NEFT/RTGS/Net Banking.
Scheme can be availed by you on toll payments usingFASTag at National Highways Toll Plazas. The cashback scheme for the current FY is 5%.*
Issuer bank are who issues the FASTag to their customers (Vehicle Owner) and link the tag to an account (Prepaid/ Savings/Current) for deduction of toll fare.
Acquirer bank are who Integrate with the Toll Plaza for acquiring toll transaction & settle the payment to concessioners.
The current NETC system of NPCI facilitates the transaction switching, settlement & dispute management between Issuer & Acquirer bank.
Provide required infrastructure for acceptance of NETC FASTag at plaza. This includes ETC lanes, RFID Reader, Cameras, AVC etc.