Starting from May 1st, 2025, the National Highways Authority of India (NHAI) has made big changes to FASTags.
This set of reforms completes the most sweeping electronics toll-collection system reboot since these devices became mandatory in February 2021.
The new rules aim to be more user-friendly by solving some of the long-standing problems with e-commerce sites. They also hope to make things a little smoother on the operational side for FASTag operators and toll booths.
Dual-Authentication System Introduction
In the upcoming month of May, probably the most striking change will be this new dual-authentication system for all payments made with FASTag.
In this new scheme, all user-paid transport charges must now have both an RFID wave so that they can collect information about your vehicle’s direction and time of day as well arise quantitatively and a supplementary digital judgment method (backed by mobile phones registered to the car owner).
“The dual-authentication system significantly reduces the risk of unauthorized transaction and toll fraud,” explained Rajiv Mehta, Member (Finance) at NHAI during the media conference in New Delhi.
“With growing concerns about cloned tags and unauthorized use, this added layer of security ensures that only account holders themselves make payments.”
Those who own a car need to update the FASTag mobile app on their phones before April 28th. If you don’t, you will find your next transaction is full of misunderstandings or lost payments.
The update enables instant reporting of transactions as well and allows for setting restrictions on your account balance.
The available level of charging now also depends upon how often you move money to fast posts connected with particular highways.
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Additional provisions in the commercial vehicle operator area are that minimum balance holding amounts are mandatory quarterly as a percentage of vehicle type and how they are typically used.
Heavy commercial vehicle quarterly amount must remain at or above Rs 1,000, while medium commercial vehicles must keep at least Rs 750 in their accounts.
“These new limits account for different toll rates and economic situations on national highways all across China,” said Sunita Patel, director of electronic toll collection at NHAI.
“By requiring a certain amount of money to be in one’s account at servers or other facilities, we can reduce pass-through problems significantly,” Pakiri Kumar, associate director for IT Infrastructure at NHAI said. “This will also improve efficiency in total traffic flow through toll plazas.”
Integration with Motor Vehicle Fitness Certification
In a move to organize regulations comprehensively, starting May 15, 2025 the Ministry of Road Transport and Highways decreed that FASTag must be tied in with the status of one’s motor vehicle fitness certification.
As a result, at toll plazas vehicles that have not yet updated their fitness certificates will cause alarms to be sounded automatically.
Although the initial phase targets heavy commercial vehicles, all categories should be covered by December 2025.
The system itself will locate vehicles that are out of compliance and flag those; however, during the first phase of implementation, there will be no restrictions on toll passage.
“It is this kind of comprehensive approach that will maintain road safety standards as well as enforce regulatory requirements,” Transport Minister Arjun Sharma said at the announcement in Parliament.
“Thanks to electronic infrastructure built on what has gone before, we can now enhance compliance checks without incurring any additional burden on law-abiding road users.”
Owners, through the unified transport portal which was inaugurated in collaboration with city transport bureaux on a nation-wide basis.
Localized Dynamic Pricing Model
New regulations also introduce a pilot dynamic pricing model whereby toll rates for certain high-traffic corridors will vary by time of day.
Under this system, off-peak hours may see a 25% lower cost and during peak periods rates become even higher than before.
Delhi-Meerut Expressway
Mumbai-Pune Expressway
Bengaluru Outer Ring Road
Chennai-Bengaluru Highway
“Dynamic pricing encourages travelers to make use of our highway infrastructure during the off-peak periods.
By rewarding those who travel during low-traffic times, we achieve a smoother flow of traffic for all travelers and as a result reduce the time that everyone is locked in transit,” said Dr. Amita Singh with the Indian Institute of Technology Delhi, an expert in transportation economics.
The NHAI mobile app will give people very up-to-date pricing information–before they start trips, they can calculate estimated toll costs. The app will also help people plan trips.
Technological Advances And Interoperability
As part of these regulatory changes, the FASTag infrastructure is getting a comprehensive technical upgrade. Some highlights of the improvements:
Next-generation RFID tags with improved reading distance and reliability
Blockchain-based transaction verification for stronger security
Integration with UPI2.0 to top up insantly
Cross-border inter-operability with nearby countries (to start with we will work with Nepal and Bhutan)
Operation
Existing tag users need to replace their tags within six months, and the replacement process will be launched in stages based on tag issuance date.
The NHAI has promised that users will not be charged for replacement IF they are able to replace them before they have to, as outlined by the rules.
New Fastag Rule is launched in India from May 2025
For ordinary motorists, these alterations will require various preparatory actions. In addition they must:
Update contact information and the KYC details within the FASTag database
Install or update the official FASTag mobile application
Make the switch from one tag to the other within the time period allotted
“Although moving into new realm may initially bring some convenience, these conspicuous such-and-such-conspicuous such sk beneficiaries gambol between long haul networks greater than in the past,” said Vikram Desai, President of the All India Motor Transport Congress.
It should also be known that special service counters are set up at the main toll stations to help passengers through this period. Service hours extended from April 15 to June 30, 2025.
