Definition
FASTag
FASTag is an RFID-based prepaid tag affixed to a vehicle's windscreen that automatically pays highway tolls by deducting from a linked account as you pass through toll plazas.
FASTag uses radio-frequency identification so that, as a vehicle drives through a toll plaza, the toll is read and deducted automatically from a linked prepaid wallet or bank account, removing the need to stop and pay cash.
It is mandatory for most four-wheelers on national highways and is issued by banks and NPCI. You recharge the FASTag wallet via UPI, cards or net banking, and SMS alerts confirm each deduction.
Beyond tolls, the underlying tag is being extended to uses like parking and fuel payments at participating locations, making it a broader vehicle-linked payment instrument.
Related terms
- RuPayRuPay is India's home-grown card payment network, built by NPCI, that powers debit, credit and prepaid cards as a domestic alternative to international networks.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.