Why in news ?
The National Highways Authority of India (NHAI) launched the "FASTag Annual Pass" facility at 1,150 toll plazas on the 79th Independence Day.

Key features of Annual Pass
The biggest feature of the FASTag annual pass scheme is its one-time fee payment.
- The user has to pay only ₹3,000.
- The validity of the pass is up to one year or up to 200 toll plaza crossings, whichever is completed first.
- This facility is available only for non-commercial vehicles.
- It is mandatory to have a valid FASTag already installed on the vehicle to avail the pass.
Benefits for travellers
- They will not need to recharge before every journey.
- Travelling without stopping at toll plazas and faster will be possible.
- Time and energy will be saved by eliminating the need for cash payment.
- This will prove to be an economically beneficial option for long distance travellers.
- The problem of jam and congestion will be reduced.
Benefits for the government and NHAI
- The toll collection process will be completely digital and transparent.
- Due to reduction in cash transactions, the possibility of corruption will be reduced.
- The efficiency of revenue collection will increase and administrative management will be simplified.
- This scheme strengthens the government's Digital India initiative and Green Mobility Mission.
FASTag:
- It is an electronic toll collection system introduced by the Government of India, which is operated by the National Highways Authority of India (NHAI).
- Its purpose is to reduce traffic jams at toll plazas and promote digital payments instead of cash transactions.
Key points of Fastag:
- Definition – FASTag is a Radio Frequency Identification (RFID) based tag which is pasted on the windscreen of the vehicle. This tag deducts the toll amount directly from the linked bank account or prepaid wallet by contacting the sensor installed at the toll plaza.
- Beginning – The Fastag system was started on a trial basis in 2014 and from 15 December 2019 it was made mandatory for all vehicles.
- Where can it be purchased - FASTag can be purchased from various banks (like SBI, HDFC, ICICI, Paytm Payments Bank etc.), NHAI toll plazas, and online platforms.
How it works -
After pasting the Fastag on the windscreen of the vehicle
- The RFID reader installed at the toll plaza scans the tag.
- The system automatically deducts the toll amount and the vehicle proceeds without stopping.
- The vehicle owner receives information about the payment through SMS.
Q. How much one-time fee will a user have to pay for the recently introduced Fastag annual pass ?
(a) ₹2,000
(b) ₹2,500
(c) ₹3,000
(d) ₹5,000
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