Following a widespread panic, the Ministry of Road Transport and Highways (MoRTH) has confirmed that FASTag will not be phased out on May 31, 2025, silencing rumors about a country-wide transition to GPS-based tolling. The satellite tolling system is yet in its trial mode, and FASTag will remain India's primary toll payment method, the ministry said.
What Caused the Panic?
There were recent reports that India was on the cusp of ditching the FASTag system in favor of a GPS-based satellite tolling model. This left private car owners and commercial fleet operators uncertain, with many fearing a sudden shift in tolling infrastructure.
Govt Clarification: No FASTag Ban, No GPS Rollout Yet
MoRTH has clarified the following:
FASTag will continue to be operational and compulsory for toll collection.
The satellite tolling system is being piloted with no rollout date set.
Future implementation, if any, will be step-by-step, transparent, and accompanied by public engagement.
What Is Satellite-Based Tolling?
The new satellite-based system would employ GPS data to monitor car travel and automatically deduct tolls on the basis of distance covered, without physical toll booths.
Nevertheless, it calls for substantial upgrades in infrastructure, changes in the legal environment, and the fitting of GPS systems in all vehicles.
FASTag's Present Benefits and Coverage
With more than 8 crore active subscribers and over 1 crore transactions per day, FASTag has emerged as a digital success story:
Saves time by keeping the toll queue waiting time minimal.
Encourages cashless payments and fuel economy.
Functions at 800+ toll plazas across the country.
No Action Required for Vehicle Owners
Authorities recommend drivers to ignore false messages, keep FASTag accounts active, and remain updated through official websites such as the NHAI website or MoRTH notifications. The shift to satellite tolling—if and when implemented—will be smooth, not sudden.
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