FASTag in India: A Financial Review of Adoption, Usage, and Economic Impact

Abstract

FASTag, which is an RFID-based electronic toll collection system, marks yet another milestone in India’s journey towards digital infrastructure and smart transportation. This review paper examines FASTag from an economic and operational viewpoint. It provides an overview of its evolution, technological structure, adoption, and cost implications. According to the news stories that I incorporated into my development. Their development was hindered by journalists and television programs. The system has improved toll revenue collection, reduced operational costs, increased user convenience and cyber audits have become stronger. The transition to digital has led to behavioural changes in the users like financial planning and digital payments. Even though there are problems including technical failures, refund delays, irregular customer support and lack of financial literacy, especially in rural India. The paper discusses how policy interventions and public-private partnerships can drive adoption. It also mentions integration with ancillary services. It emphasizes that FASTag can also be used for financial inclusion, green and future mobility ecosystem like GPS-based tolling. The study wraps up with suggestions for enhancing user experience and making it more equitable, while also regarding FASTag as a transformative innovation with immense potential.