The Ministry of Road Transport and Highways has extended the deadline for FASTags for all vehicles in India. The ministry had announced that from January 1, 2021, FASTags would be made mandatory for all vehicles. However, the deadline has now been pushed by a month and a half. The new deadline for FASTags to be made mandatory to cross a toll plaza has been set at February 15, 2021. The move has been made to give time to the public to comply with the new norm. FASTags were introduced in back in 2017 with the aim to digitise highway toll collection at plazas and move towards cashless transactions. The Indian government made it mandatory for all new four-wheelers and commercial vehicles to be fitted with the RFID tags from December 1, 2017.
In the past, toll plazas featured a handful of lanes dedicated to RFID users, while a majority remained cash lanes. In order to promote the use of FASTags, the government transformed all lanes to FASTag lanes, leaving a single lane for cash transactions. At present, FASTag transactions consist of around 75-80% of all toll collections in India. The Indian government was aiming to go 100% cashless at toll plazas from January 1, 2021. However has decided to push the date to February 15, 2021.
The Central Motor Vehicles Rules, 1989 have been amended to accommodate the change. Additionally, From April 1, 2021, FASTags will be enforced even further. From the next financial year, to obtain third party insurance policies for vehicles, FASTags will be required as well.
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