From May 1, 2025, FASTag to be Replaced by GPS-Based Toll Collection System — Here’s What You Need to Know

Starting May 1, 2025, road travel in India is set to become smoother as the Central Government prepares to roll out a GPS-based toll collection system. The National Highways Authority of India (NHAI) will transition away from the current FASTag system and implement the Global Navigation Satellite System (GNSS) — a satellite-powered model that charges tolls based on the actual distance a vehicle travels on highways.

What is GNSS-based Toll Collection?
The new toll system will track vehicle movement using satellite technology. Vehicles will be equipped with a GPS-based On-Board Unit (OBU) or tracker. This unit will monitor highway usage, and toll fees will be calculated based on the distance covered. Charges will be automatically deducted from a linked digital wallet, with options for prepaid and postpaid payments.

Why Replace FASTag?
Although FASTags, introduced in 2016, significantly reduced waiting time at toll plazas, they have not been free from issues. Problems such as technical glitches, long queues, and misuse of tags have persisted. To provide a more seamless and reliable experience, the government is shifting to the GNSS-based system.

How Will GNSS Help Commuters?

• No more stopping at toll booths — making travel faster
• Reduces manual errors and fraud risks
• Enables a fully contactless and seamless driving experience

What FASTag Users Should Do:

• Continue using FASTag until April 30, 2025
• From May 1, install a government-approved GPS device in your vehicle
• Link your bank account or digital wallet to the new toll system
• Once the transition is complete, you can remove the FASTag sticker

Rollout Timeline:
Union Minister Nitin Gadkari recently confirmed that the GNSS system will begin rolling out by the end of April after initial delays. The Centre plans a phased implementation over the next 15 days.