FASTags will be mandatory for all four-wheelers from January 1, 2021, as per notifications issued by the Ministry of Road Transport and Highways (MoRTH) released on Saturday. The Centre has stated that the decision was taken in order to facilitate digital and IT-based payment of fees for toll collection. According to the notification, all four-wheeler vehicles, including old vehicles sold prior to December 1, 2017, will fall in the ambit of this order.

The Central Motor Vehicle Rule, 1989, states that FASTag is necessary for the registration of new four-wheeler vehicles from December 1, 2017, and adds that the same will be made available by vehicle manufacturers or dealers.

The National Highways Authority of India (NHAI) calls the FASTag, an electronic toll collection system that it has implemented across the country. As per the system implemented, FASTag employs Radio Frequency Identification technology to facilitate payments at designated tolls directly from prepaid or saving accounts linked to it or directly to toll owners. The electronic tag is generally fixed to the windscreen of a vehicle and allows vehicle owners to drive through toll plaza without stopping for transactions.

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The MoRTH has also stated that a valid FASTag will be mandatory if one has to procure new third party insurance through an amendment in FORM 51 (certificate of insurance), where details of FASTag ID will be captured.