The government has made FASTags mandatory for all four-wheeler vehicles from January 1, 2021, in an attempt to smooth traffic on the highways. Until now, by statute, FASTags were only mandatory for new vehicles sold as of December 2017. FASTag was therefore made mandatory for the extension of insurance from 1 April 2021 to ensure it is indispensable. If you have nil depreciation, robust or third-party protection, you will need a FASTag.
To limit tailbacks on the Indian highways, MoRTH (Ministry of Road Transport and Highways) aims to abolish cashless payments across 100 percent of toll booths. FASTag is an electronic payment option dependent upon RFID (radio frequency identification). Without the need to wait for cash payment, it enables easy flow of traffic through toll gates. You can buy a FASTag from many online payment aggregators, banks or even at kiosks at the toll booth.