The National Highways Authority of India (NHAI) has introduced a new cashless payment system, FASTag, at toll plazas on the country’s main expressways.
The Times of India reports that FASTag, which was formally launched on a highway in Ahmedabad, is now being rolled out at more than 275 toll plazas across the country. It uses RFID technology to scan tags placed on the windscreen of the vehicle, which will then automatically take payments from the pre-paid account linked to the vehicle.
The initial fee is INR200 (US$3) and vehicles using FASTag will be able to used dedicated lanes.
According to the newspaper, NHAI will offer 10% cash back on toll payments to FASTag users during the 2016-17 financial year. This will be credited back to the user’s FASTag account at the beginning of the next month.
The scheme is aimed at streamlining traffic along national highways.