What is the technology being employed for electronic toll collection on highways? What are its advantages and limitations? What are the proposed changes that will make this process seamless? Would this transition carry any potential hazards?
Approach · directive: “what / would”
What it asks · Explain FASTag's RFID-based tolling, its pros and cons, the planned move to satellite-based barrier-free tolling, and the risks of that move.
It asks 4 things — answer each
- What: the technology used for electronic toll collection on highways (FASTag — RFID under NETC)
- What: its advantages and limitations
- What: the proposed changes for seamless tolling (GNSS-based, barrier-free, distance-based)
- Would the transition carry hazards: privacy, technical, enforcement and exclusion risks
Open with · Recent event and technology: since 15/16 February 2021 every plaza lane is a FASTag lane (MoRTH); FASTag is a passive RFID sticker linked to a wallet or bank account, read under NETC.
Cover
- Technology: FASTag, a passive RFID sticker linked to a prepaid wallet or bank account, read under NETC; all plaza lanes FASTag lanes since 15/16 February 2021 (MoRTH).
- Advantages: shorter queues, fuel and time savings, cashless and traceable collection, less leakage, better traffic data.
- Limitations: plazas and barriers remain; reader failures, blacklisted or cloned tags, double deductions; flat charge regardless of distance; double fee without a valid tag.
- Proposed: GNSS-based ETC with on-board units and ANPR for barrier-less, multi-lane free flow and distance-based charging; pilots on NH-275 and NH-709, July 2024 decision.
- Hazards: location data and surveillance (DPDP Act 2023 must bind toll data), GNSS signal loss or spoofing, cyber attacks.
- Enforcement gaps: evasion without barriers, dispute resolution, exclusion of users without devices or accounts.
Close with · A phased, hybrid rollout — NavIC-backed positioning, strict purpose limitation on data and clear grievance redress — can make tolling seamless without making it unsafe.
Add value (verified)
- MoRTH decided to implement GNSS-based tolling on selected National Highway sections as a pilot alongside FASTag (July 2024).PIB — New Toll Collection System (MoRTH, 24 July 2024) ↗“It has been decided to initially implement GNSS based Electronic Toll Collection (ETC) System at selected sections of National Highways on pilot basis as an added facility along with FASTag.”
- GNSS-based tolling was first trialled on the Bengaluru–Mysore section of NH-275 and the Panipat–Hisar section of NH-709 (MoRTH, July 2024).PIB — New Toll Collection System (MoRTH, 24 July 2024) ↗“The Pilot study with regard to Global Navigation Satellite System (GNSS) based user fee collection system has been done on the following two Highway stretches:- Bengaluru-Mysore section of NH-275 in the State of Karnataka. Panipat- Hisar section of NH-709”
- MoRTH (PIB, 14 February 2021): all lanes of fee plazas on National Highways declared 'FASTag lane of the fee plaza' from midnight of 15/16 February 2021; vehicles without a valid FASTag pay double the fee.PIB, Ministry of Road Transport & Highways (14 February 2021): FASTag declared mandatory from midnight tomorrow ↗“Ministry of Road Transport & Highways has decided that all lanes in the fee plazas on National Highways shall be declared as “FASTag lane of the fee plaza” w.e.f midnight of 15 th /16 th February 2021.”
Question: UPSC's CS (Main) 2024, GS Paper III — paper ↗. Approach: Minimalist IAS, checked 3 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer· 224words · Minimalist IAS
Since 15/16 February 2021 every lane at a National Highway fee plaza is a FASTag lane (MoRTH). FASTag is a passive RFID sticker linked to a prepaid wallet or bank account, read by plaza antennas under the National Electronic Toll Collection system.
Advantages
- Flow and savings: shorter queues, fuel and time saved; cashless, traceable collection with less leakage and richer traffic data.
Limitations
- Plaza-bound: barriers remain; reader failures, cloned or blacklisted tags and double deductions breed disputes; a flat charge ignores distance travelled.
Proposed changes
- GNSS tolling: on-board units and ANPR cameras allow barrier-free, multi-lane free flow with charges for the distance actually used.
- Rollout: after trials on Bengaluru–Mysuru (NH-275) and Panipat–Hisar (NH-709), MoRTH decided in July 2024 to pilot GNSS tolling alongside FASTag.
| Aspect | FASTag (RFID) | GNSS tolling |
|---|---|---|
| Charge basis | flat, per plaza | distance travelled |
| Infrastructure | plaza readers, barriers | on-board unit, ANPR |
| Traffic | slows at plaza | multi-lane free flow |
Potential hazards
- Privacy: continuous location tracking of every vehicle; the DPDP Act 2023's consent and purpose rules must bind toll data.
- Technical: GNSS signal loss in tunnels and hills, spoofing, cyber-attacks on the backend.
- Enforcement and equity: evasion without barriers, disputed deductions, exclusion of users without devices or accounts.
A phased, hybrid rollout — NavIC-backed positioning, strict purpose limitation on data and clear grievance redress — can make tolling seamless without making it unsafe.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 3 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.







