Good news arrives on New Years Eve. The Ministry of Road Transport and Highways has extended the deadline for FASTag to be mandatory for all four-wheelers and commercial vehicles. Previously established as December 31, 2020, the deadline has been extended by a month and a half.
The Ministry of Road and Highway Transport has extended the deadline for FASTags for all vehicles in India. The ministry had announced that as of January 1, 2021, FASTags would be mandatory for all vehicles. However, the deadline has been delayed by a month and a half. The new deadline for FASTags to be mandatory to cross a toll plaza was set for February 15, 2021. The move has been made to give the public time to comply with the new rule. FASTags were introduced in 2017 with the aim of digitizing the collection of road tolls in squares and moving towards cashless transactions. The Indian government made it mandatory for all new four-wheelers and commercial vehicles to be equipped with RFID tags as of December 1, 2017.
In the past, toll plazas featured a handful of lanes dedicated to RFID users, while the majority remained cash lanes. In order to promote the use of FASTags, the government transformed all lanes into FASTag lanes, leaving only one lane for cash transactions. At present, FASTag transactions consist of around 75-80% of all toll charges in India. The Indian government aimed to go 100% cashless at the toll plazas from January 1, 2021. However, it has decided to postpone the date until February 15, 2021.
The 1989 Central Motor Vehicle Rules have been modified to accommodate the change. Additionally, as of April 1, 2021, FASTags will apply even more. Starting next year, to obtain third-party insurance policies for vehicles, FASTags will also be required.
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