Union Minister for Road Transport, Highways and MSMEs, Nitin Gadkari said that FASTags will be mandatory for vehicles from January 1, 2021.
FASTags, which facilitate electronic payment of fee at toll plazas, was introduced in 2016. Making the tags compulsory would also help in ensuring that vehicles pass seamlessly through the toll plazas as fee payment would be done electronically.
Gadkari in a statement said that FASTag is being made mandatory for all vehicles in the country from the new year.
Addressing a virtual function on Thursday, he also said that FASTag will be useful for commuters as they will not have to stop at toll plazas for cash payments. Besides, it will also help save time and fuel, he added.
FASTag was launched in 2016 and four banks together issued nearly a lakh of them. By 2017, their numbers went up to seven lakh and more than 34 lakh FASTags were issued in 2018.
In November this year, the ministry issued a notification also making FASTag mandatory from January 1, 2021 for old vehicles or that were sold before December 1, 2017.
As per the Central Motor Vehicles Rules, 1989, since December 1, 2017, FASTag had been made mandatory for registration of new four-wheelers.