India is moving towards a barrier-free, fully digital tolling system that could allow motorists to pass through toll points without stopping to make payments, with the new system expected to be rolled out by March 2027.
Union Road Transport and Highways Minister Nitin Gadkari said the proposed system will combine vehicle number-plate recognition with FASTag to identify vehicles and collect tolls as they move through designated highway stretches.
“With AI and free-flow tolling, India is moving from stopping at toll plazas to simply moving through them. The highway of tomorrow is intelligent, seamless and cashless.”
Speaking at Global Fintech Fest 2026 in Mumbai, Gadkari said the next phase of digital tolling would focus on removing the remaining delays at toll points while improving revenue collection. The system is expected to increase annual toll revenues by around Rs 10,000 crore.
How will barrier-free tolling work?
The proposed model will use data from both FASTag and vehicle number plates to identify vehicles travelling on tolled highway sections. This would allow toll charges to be collected without requiring vehicles to stop at a conventional toll plaza.
FASTag has already significantly reduced waiting times at toll plazas. According to the minister, waiting times have fallen by 80-90%, from around 12 minutes earlier and as high as 30 minutes at some locations.
The shift towards barrier-free tolling builds on the government’s efforts to make highway payments more seamless and reduce dependence on physical toll collection infrastructure.
Gadkari said FASTag was initially introduced as a pilot project in 2014, formally launched in 2016 and made mandatory in 2021.
“FASTag is one of the success stories…in 2014, we started this as a pilot project. Our objective for tolling was to make it seamless, transparent and efficient. In 2016, we officially launched it. In 2021, we made FASTag mandatory. And today, the results are before us. FASTag penetration at National Highway toll plazas is now more than 98 per cent. So far, more than 13 crore FASTags have been issued in the country.”
FASTag penetration crosses 98%, One Tag to let users switch banks
FASTag uses radio-frequency identification technology to automatically deduct toll charges from a linked account as a vehicle passes through a toll plaza. Its widespread adoption has reduced cash transactions and helped streamline toll collection.
More than 98% of National Highway user-fee collection now takes place digitally through FASTag, with around 13 crore FASTags issued across the country.
Alongside the move towards barrier-free tolling, the government is also introducing One Tag to make FASTag more flexible for motorists. The system will allow users to change their FASTag-issuing bank without having to purchase a new tag.
At present, changing banks requires motorists to obtain a new FASTag and remove the existing one from their vehicle. Under One Tag, users will be able to retain the same tag while switching banks, similar to the way mobile number portability allows customers to change telecom operators without changing their phone number.
“The introduction of One Tag will make FASTag more convenient by allowing users to switch banks while continuing with the same FASTag. Earlier, users had to purchase a new FASTag and remove the old one from their vehicle. Now, this will work much like mobile number portability, switch your bank, keep your tag, and keep moving,” the minister said.