Technology has created a significant impact on people and the way things function. All over the world, they are using it to save time, effort and labour. While most of the companies have started including them as a replacement to manual labour, why not use it for infrastructure? The Indian government introduced the Digital India movement, where it inspired all the companies and governmental institutions to use electronic devices for performing their regular tasks.
As India switches to a toll-operate-transfer model, the
success of FASTag has been evident. It is a data intrusive centralised system
which accepts the data of the car electronically. The voluntary but mandatory
proposition will positively impact the Indian economy. It is convenient,
reduces congestion at toll plazas, and helps the economy aim at an all-round
digital functionality.
What is it?
FASTag
electronic toll collection is operated and controlled by the National
Payments Corporation of India (NPCI) along with various banks and the Indian
Highways Management Company Limited (IHMCL). All the vehicles will have an RFID
tag linked to their wallet or bank account. The charges will deduct directly
from these as they pass the toll plazas. It will also make the whole process
cashless.
The benefits of electronic toll collection include
decongestion of Indian Highways, where all the cars do not have to wait for
paying the toll by cash, thus making the movement of vehicles faster and
smoother. Other advantages include a reduction in fuel consumption, lesser
revenue leakage, and increased transparency in the processing of toll payments.
Twenty-two banks are certified to issue the tags. Ten banks
act as ‘acquirers’. They enter into contracts with individual concessionaires
to support the installation of tag readers and acceptance infrastructure. The
toll collection infrastructure is operated by NPCI and IHMCL, with private and
public sector banks, financial institutions and infrastructure companies as
shareholders.
