Economy

FASTag toll collection nearing pre-Covid levels

Our Bureau New Delhi | Updated on September 09, 2020

FASTag toll collection at national highways is nearing pre-Covid, levels, according to data compiled by the National Payments Corporation of India. In August, toll collection through FASTag stood at ₹1,712.58 crore, up from ₹247.58 crore in April.

FASTag is a digital payment mechanism for paying toll on national highways.

Toll collection had taken a significant hit after nationwide lockdowns were announced as a measure to plug the spread of Covid-19 pandemic in the country. In terms of volumes, there were 96.83 million FASTag transactions in August 2020, up from 10.26 million in April 2020.

 

This signifies a gradual reduction of economic activity and inter-State movement of goods and people. These FASTag transactions are monitored through banks that are registered on the National Electronic Toll Collection (NETC) programme. This offers an interoperable nationwide toll payment solution, including clearing house services for settlement and dispute management. Currently, the programme is live on over 650 toll plazas across the country and has 26 banks on board.

To boost the adoption of FASTag, the Roads Ministry also made mandatory for availing all discounts on the National Highways Fee Plazas in August this year. It has also been proposed to make it compulsory to have a FASTag with pre-loaded balance money in the wallet to get a new third-party insurance. If approved, this may be applicable from April 1, 2021.

Source: National Payments Corporation of India data

Published on September 09, 2020

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