Amid reports suggesting changes to FASTag transaction rules, the Ministry of Road Transport & Highways (MoRTH) and the National Highways Authority of India (NHAI) have issued clarifications, assuring that the recent guidelines will not impact FASTag users.
The clarification comes in response to concerns regarding Circular No. NPCI/2024-25/NETC/004A, dated January 28, 2025, issued by the National Payments Corporation of India (NPCI). Some publications had interpreted the circular as imposing a restriction on FASTag transactions if the tags were inactive for more than 60 minutes before toll plaza read time and up to 10 minutes after. However, NHAI has now confirmed that this circular is primarily aimed at streamlining dispute resolution between Acquirer Banks and Issuer Banks regarding FASTag statuses during toll transactions.
The key objective of the circular is to ensure FASTag transactions occur within a reasonable timeframe of a vehicle passing through a toll plaza, preventing customer inconvenience caused by delayed transactions.
Currently, all National Highway toll plazas operate on the ICD 2.5 protocol, which provides real-time tag status updates. This ensures that FASTag users can recharge their accounts anytime before crossing a toll plaza without facing transaction failures. However, certain toll plazas on State Highways still function on the older ICD 2.4 protocol, which requires periodic updates of tag statuses. Plans are underway to transition all such plazas to the more advanced ICD 2.5 protocol in the near future.
To further enhance user convenience, authorities are encouraging FASTag customers to link their wallets to UPI or their current/savings accounts under an auto-recharge setting. This will eliminate the need for manual top-ups and ensure seamless transactions at toll plazas. Additionally, users can continue to recharge their FASTag accounts via multiple payment channels, including UPI and net banking, at any time before reaching the toll booth.
Authorities emphasize that the recent circular should not be misconstrued as a restriction on FASTag users but rather as an initiative to enhance transaction efficiency and dispute resolution mechanisms between banking entities. FASTag users can continue to use the system as before without any changes in their experience.
