New Delhi | The Union government is set to take a major step toward transforming FASTag from a toll-only instrument into a multi-purpose digital payment tool. According to the Ministry of Road Transport and Highways, a six-month pilot trial has been successful, paving the way for the phased rollout of FASTag-based payments for parking, fuel, EV charging, and other travel-related services.
Why the Initiative Was Launched
Officials said the objective is to position FASTag as a wallet-like payment mechanism, reducing dependence on multiple payment modes during travel. The move is expected to simplify digital payments, improve traffic flow, and curb overcharging and disputes. A balance-limited framework would also help reduce the risk of digital fraud, as exposure remains capped.
Where FASTag Can Be Used
Following consultations with fintech firms, payment service providers, banks, and toll operators, consensus has been reached to enable FASTag payments for the following services:
- Toll charges
- Fuel at petrol pumps
- EV charging
- Food outlets
- Vehicle maintenance services
- City entry charges
- Other travel-related facilities
FASTag Parking at Railway Stations
A key use case of the initiative is station parking. According to Indian Railways, the Delhi Division has framed a new policy under which parking fees at New Delhi Railway Station will be collected via FASTag.
Railway officials estimate that the system will significantly reduce entry-exit congestion and overcharging complaints. Nearly 80% of vehicles, they said, enter station premises only to drop or pick up passengers and exit immediately. Automatic FASTag deductions are expected to save time and eliminate disputes.
Changes in Security and Management
Under the new policy, ex-servicemen (Ex-Army Men) will be deployed as marshals for parking and traffic management for the first time. The Railways said this would help curb complaints of misconduct by private security staff, while the training and experience of former military personnel would strengthen overall security and counter-terror vigilance.
What the New Policy Says and the Timeline
The tendering process has been completed for the Delhi Division, and a new agency will take over parking management from December 28. As per tender conditions, the company must implement all prescribed standards related to passenger facilities, vehicle management, and security within one month.
Three dedicated lanes are being developed on the Ajmeri Gate side to enable passengers with luggage to reach security checks and scanning points smoothly. Arriving passengers will be guided through designated lanes to ensure seamless access to taxis, buses, and the metro network.
What’s Next
Based on the pilot’s outcome, the government has indicated that FASTag-enabled payments will be expanded to other major cities and transport hubs. The objective is clear: one tag, multiple payments—less congestion, fewer disputes, and greater transparency.
