FASTags to be replaced by GPS-based toll collection from this date: Details

Starting May 1, road travel on India’s national highways is set to become more seamless with the introduction of a new GPS-based toll collection system. The National Highways Authority of India ( NHAI ) is preparing to move away from the widely used FASTag system and adopt a more advanced satellite-backed model that calculates tolls based on how far a vehicle travels.

GNNS-based toll collection: All you need to know

The new system, called the Global Navigation Satellite System (GNSS), will eventually replace FASTags, which have been in use since 2016. While FASTags did speed up toll transactions compared to cash payments, the need to slow down or stop at toll plazas still led to delays and long queues during busy hours. Moreover, the system has faced its fair share of glitches and complaints, prompting the need for a more efficient upgrade.

Union Minister for Road Transport and Highways, Nitin Gadkari, recently confirmed in Nagpur that the GNSS-based system will be rolled out by the end of April. After an initial delay, it was first expected to launch on April 1. The government now plans to begin the rollout within the next 15 days.



Unlike FASTag, which uses RFID technology and requires a tag on the windshield, GNSS works by tracking vehicle movement via satellite. Vehicles fitted with an on-board unit (OBU) or tracker will be monitored for their exact highway usage. Toll charges will be calculated based on the distance travelled and automatically deducted from a linked digital wallet. The new system is expected to support both prepaid and postpaid billing options.

One of the biggest advantages of this shift is the removal of physical toll plazas. With virtual tolling in place, motorists can drive without stopping, ensuring faster, smoother commutes and less congestion on major roads.