FASTag 2.0 - pay your parking fee and fuel bills

FASTag 2.0 - pay your parking fee and fuel bills

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FASTag 2.0 – pay your parking fee and fuel bills:

Conceptualised as FASTag 2.0, the new FASTags will not just cover parking payments but also fuel payments going forward

In another fillip to the government’s Digital India programme the ministry of road transport and highways is set to launch FASTag 2.0 to bring all parking fee and fuel bill payments pan-India via digital means.

The move looks to ensure the benefits of FASTags beyond toll payments. Conceptualised as FASTag 2.0, the new FASTag not just covers parking payments but also fuel payments going forward. Also top banks including SBI, Axis, HDFC and IDFC are in talks with airport authorities in Mumbai, Bangalore along with a few malls to launch the new FASTag 2.0.

The ministry of road transport and highways has already started a pilot project in this regard at Hyderabad Airport where parking fee will be paid through digital payments using FASTags. The project is also likely to be launched at the Delhi Airport in the next phase.

The proposed FASTag 2.0 is also viewed as a magic bullet that can cure many problems. “The National Highway Authority of India has already introduced the FASTag, which is applicable on all tolls. With the FASTag 2.0 there will be one tag which can be used at parking lots, tolls, movie theaters which is actually the global norm. The adoption becomes much easier even if it is not compulsory,” Shailesh Pandey, chief – sales and distribution head, Fino Payment Bank told ETGovernment.

According to Pandey, the new system will be seamless, “If it is not seamless, it will never take off. There were 60% errors in IMPS when it was launched in 2012-13 and hence nobody used it. Now there is hardly any friction in UPI and therefore everyone uses it.”

Further, the government officials, who spoke with ETGovernment on condition of anonymity, said that the date for complete roll-out of the new project is yet to be finalised. “As of now we will study how well the implementation of the December 15 deadline for mandatory digital payments at all toll-plazas across India is carried out.”

The pilot project for parking payments is launched in two phases, the first being a controlled pilot testing, wherein only ICICI tags would be used. The second phase of pilot shall cover all other issuer bank tags.

“FASTags with e-way bill will bring in more transparency and check tax evasion. At present there is no way to find out if the e-way bill presented by the transporting partner is correct, but as the new FASTags comes into force such evasions can easily be checked,” Abhishek Jain, partner, Ernst & Young told ETGovernment.

Jain further believes that the new digital mode of payment at the toll plazas will not impact the taxpayer but will surely be incremental in enhancing tax collection.

The GST council has also mandated FASTag for all commercial vehicles which would be generating an E-way bill from 1st April, 2020. This integration will help in identifying the leakages with respect to non-issuance, miss reporting of E-way bill.

With the new FASTag made mandatory for all toll payments from December 15, the government has also ensured that all vehicles sold post December 2017, are fitted with a FASTag.

Meanwhile, with the implementation of National Electronic Toll Collection (FASTag) programme, pan India across national highway, digital payments have seen a huge jump. FASTag issuance during the last week of November jumped to about 1,35,583 tags, per day on November 26 and over 1.03 lakh on November 25 form a daily average of twenty eight thousand tags.

So far over 70 Lakh FASTags have been issued by the authorities from various platforms including different banking partners.

The daily issuance of FASTags shot to a daily average of 1.5 lakh tags in last 5 days. Similarly, transactions have also gone up – from an average one million daily transactions to around 1.6-1.7 million daily transactions.

1 Comment  |  
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Elisha
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These guys didn’t consider the situation where a single car is there in a joint family & members use car as & when needed. Problem is who should link their bank account 😐 Paying out by cash was easy in this case.

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