The government is continuously adopting new techniques to make road travel easier and faster in India. In the last few years, Fastag has reduced long queues and time wastage to the toll plaza to a great extent. But now it is being claimed in social media and many reports that from May 1, 2025, Fastag will be completely closed and a new toll tax system will be implemented instead.
This news has created a lot of confusion between vehicle owners and passengers. People want to know if Fastag is really closing? What is a new toll system? Will everyone have to install a new device in their vehicles? In this article, we will answer all these questions in easy language and will tell the whole truth of the new toll tax rule.
What is Fastag and why became popular?
Fastag is an electronic toll collection system based on the Radio Frequency Identification (RFID) technology. It was started by the Government of India in 2016 to reduce the crowd and cash transactions at the toll plaza. Fastag stickers are placed on the glass of the car, which is scanned on the toll plaza and the toll amount is cut directly from your bank account or wallet.
There is no need to stop at the toll plaza with the arrival of Fastag, which saved both time and fuel. But in the recent past, complaints like technical problems, fake tags, additional charge and balance problem have also been reported.
Will Fastag be closed from May 1? (Truth of closure of fastag)
Recently, several media reports and social media posts claimed that Fastag would be completely closed from May 1, 2025 and will be replaced by GNSS or GPS -based new toll system. But the reality is slightly different from this.
Government Explanation:
The Government of India and the Ministry of Road Transport have made it clear that the Fastag system is not closing across the country since 1 May 2025. Currently, a new system will be tried or partial rollouts on only a few select highways and toll plazas. That is, currently both GNSS (Global Navigation Satellite System) and Fastag will run together. GNSS will be increased gradually, but the fastag will not be closed together in the entire country.
New toll tax system: What is GNSS and ANPR?
GNSS (Global Navigation Satellite System)
GNSS is a satellite technology, with a GPS device or on-board unit (OBU) in your vehicle. This device will track the location, movement and distance of your car. The more distance you cover on the highway, the more toll will be cut from your bank account or digital wallet. There will be no need to stay at the toll plaza or conduct a tag scan.
ANPR (Automatic Number Plate Recognition)
AnPR technology will have high-regulation cameras on the toll plaza, which will scan the number plate of the vehicle. Your car number will be linked to the government database and the toll amount will be cut automatically. There will also be no tag or sticker in this.
Comparative summary of Fastag and GNSS/ANPR system
| Speciality | Fastag (RFID based) | GNSS/ANPR (New System) |
| Technology | Rfid tag | Satellite (GNSS) / Camera (ANPR) |
| Toll cut | Tag scan on toll plaza | Distance or number plate |
| Stop at toll plaza | Sometimes necessary | No need to stop |
| Method of payment | From prepaid/bank account | From bank account/digital wallet |
| Implementation status | Across the country | Initially on some highway |
| technical issues | Tag scan, fake tag | Low, because the toll is virtual |
| Manual error | possible | Very little |
| Traffic jam | Sometimes | No |
| Saving time and fuel | Yes but limited | More |
How will the new toll system work? (How New Toll System Works)
- It is mandatory to install GPS devices in the vehicle: In the highway or toll plazas from 1 May 2025, the vehicle owners will have to install GPS devices approved by the government.
- Linking a bank account: Vehicle owners will have to link their bank account or digital wallet to GPS toll system.
- Toll cuts: As soon as you travel on the highway, your journey distance will track from GNSS and accordingly the toll will be cut automatically.
- Use of Fastag: You can use your current Fastag until GNSS is fully implemented.
- Old tag removal: Old Fastag stickers can be removed after the GNSS system is fully implemented.
Why is a new system being brought? (Why new toll system?)
- Crowd and jam at toll plaza
- Digital and transparent payment process
- Get rid of the problem of manual errors and fake tag
- Make the journey faster, convenient and modern
- Saving time and fuel
Benefits of new toll tax rules
- There is no need to stop at the toll plaza, the journey will remain uninterrupted.
- The more distance you cover, the more toll has to be paid – the fair system.
- Reduced manual error and probability of fraud.
- Transparency and security from digital payment.
- Traffic jams, time and fuel saving.
- Both prepaid and postpaid options available.
Fastag important things for users
- You can use your current Fastag by 30 April 2025.
- It will be necessary to install GPS devices on the highway on which GNSS will apply.
- Bank account or digital wallets have to be linked to the new system.
- Remove Fastag stickers only after GNSS is fully implemented.
- Rely on government information for new system information and updates.
Questions related to new toll system (FAQs)
Q1. Will Fastag be closed in the entire country from 1 May 2025?
No, at present, only a GNSS or ANPR system will start as a trial on only a select highway. Fastag will not stop yet.
Q2. Do I have to install a new device in my vehicle?
Where GNSS will be implemented, it will be necessary to install GPS devices.
Q3. Will toll plazas be removed completely?
The goal is that toll plazas are not needed in the future, but this process will gradually apply gradually.
Q4. Is the new system safe?
Yes, digital and satellite based systems are more secure and transparent.
Q5. Will the old Fastag get back the money back?
After the GNSS is fully implemented, the Fastag account can provide the facility to withdraw or transfer the remaining money.
Fastag New Rules 2025 new Rules 2025)
The government has also implemented some new rules for Fastag:
- If the fastag remains inactive for 60 minutes or is not activated for 10 minutes after crossing the toll, the transaction will be rejected.
- Payment will be charged an additional fee for 15 minutes after passing through the toll plaza.
- It will be necessary to recharge Fastag in advance, there will be no recharge facility at the toll booth.
- Penalty and fastag can be blacklist for not following the rules.
New toll system: challenges and precautions
- Technical problems may occur in the initial stages.
- All vehicle owners will have to learn to install GPS devices and link bank account.
- Questions may arise about data security and privacy.
- Availability of network and devices in rural areas can be a challenge.
New toll tax system: Table overView
| Topic | Acquaintance |
| Date of implementation | 1 May 2025 (on select highway) |
| Existing system | Fastag (RFID based) |
| New system | GNSS (GPS based)/ANPR (Number Plate Scanning) |
| Toll cut | Distance or number plate |
| Bank account requirement | Yes, it is necessary to link |
| Need tag | Not in GNSS, not in ANPR |
| Trial/rollout | Initially on some highway, later expansion |
| Toll plaza | Will be removed slowly |
| Saving time and fuel | More |
| Transparency | More |
| technical issues | Less |
| Security | More |
Fastag vs. GNSS/AnPR: Comparison Table
| point | Fastag system | GNSS/ANPR System |
| Technology | Rfid tag | Satellite/Number Plate Scanning |
| Toll cut | Tag scan on toll plaza | Based on the distance/number plate |
| Stop at toll plaza | Sometimes | No |
| Method of payment | From prepaid/bank account | From bank account/digital wallet |
| Implementation status | Across the country | Initially on some highway |
conclusion
The truth of the rumors and confusion about the new toll tax system is that Fastag is not closing across the country since 1 May 2025. The government has made it clear that the GNSS or ANPR -based new system will currently start as a trial on a select highway. Gradually it will be expanded and this new system can be replaced by Fastag in the future, but for now Fastag will also continue.
Passengers and vehicle owners do not need to panic or focus on rumors. Follow government information and guidelines, take updates from time to time and be prepared for the new system.
Disclaimer (disclaimer)
This article has been prepared on the basis of available government and media reports. Fastag is not closing across the country since 1 May 2025. The new GNSS or ANPR system will currently be applicable to the trial or select highway. It will be gradually expanded. Please rely only on official government information for any update or change. Avoid rumors and keep the right information.
