Is FASTag Really Free of Cost?

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Is FASTag Really Free? Here’s What You’re Actually Paying For

FASTag is now mandatory for most vehicles on national highways in India. It helps make toll payments smoother and quicker. But many first-time users wonder: Is buying a FASTag free of cost? While some providers may promote free FASTag offers, the full picture depends on who you’re buying it from and when. In this blog, we’ll break it down clearly so you know what’s actually free and what’s not.

Common Charges When Buying a FASTag

Even if the tag is advertised as free, most FASTags involve a few basic components that you need to pay for upfront:

ComponentEstimated Cost
  
Tag issuance fee₹0 to ₹200; often waived
Refundable security deposit₹100 to ₹400
First-time wallet recharge₹100 to ₹200
Delivery or add-on services₹50 to ₹100, if applicable

Why FASTag Isn’t Fully Free?

Many providers advertise FASTag as free, but this usually refers only to the waiver of the issuance fee. You still need to pay a refundable security deposit and load a minimum recharge balance to activate it. These upfront costs help cover the administrative process, backend systems, and customer support required to make FASTag work smoothly from day one.

How FASTag Costs Differ by Provider?

Where you buy your FASTag makes a difference in how much you pay:


 

  • Banks may waive issuance fees during promotional offers, but still collect deposits and recharge amounts.
  • Digital Wallets like Paytm or Amazon Pay may bundle in service charges or offer discounts during festive seasons.
  • Toll Plazas may distribute FASTags free of charge during official drives, but stock and availability are often limited.

What a ‘Free FASTag’ Really Means?

You may come across ads like Get FASTag for Free from banks or wallets. This usually means:

  • The tag issuance fee is waived.
  • You still need to pay the security deposit and minimum balance.
  • In some cases, delivery charges or KYC fees may apply.

So while the tag itself may be handed over at no cost, the overall setup is not completely free.

When Is FASTag Actually Free?

FASTag is closest to being free when:

The government or NHAI runs a free distribution campaign.
A bank offers a limited-period issuance fee waiver.
Wallet providers offer cashback promotions or waive deposits for new users.

Even in these cases, you must still recharge the tag before it becomes usable.

Is FASTag Free for New Cars?

Some car dealerships provide a FASTag as part of the vehicle delivery process. This may appear to be free, but:

  • The cost is often part of the complete payment amount for the car.
  • The new owner still needs to activate the tag and add a balance before use.
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Why You Still Need to Pay a Security Deposit?

The security deposit is a refundable amount that protects the issuing bank or wallet provider in case of non-compliance or misuse. You can claim this amount back when you close your FASTag account, provided there are no pending dues.

Are There Any Hidden Costs?

There are usually no hidden charges if you:

  • Buy from an authorised provider
  • Avoid third-party agents with unclear pricing
  • Recharge directly through the bank or wallet linked to your FASTag
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Extra costs may apply if you opt for doorstep delivery, physical KYC updates, or delayed recharges that trigger penalties.

So, Is FASTag Free?

Think of a free FASTag like getting a free SIM card, you still need to recharge it to use it.

So, although a FASTag is not typically 100% free, the process of buying and activating it is affordable and simple. Most private car owners spend between ₹200 to ₹400 in total to get started. With low initial charges and wide usability, the small investment pays off in smoother, faster travel.

Frequently Asked Questions (FAQs)

Not always. While some providers offer free FASTags during promotional periods, you usually pay a tag issuance fee, security deposit, and an initial recharge amount.

Typically, you may pay a one-time issuance fee (around ₹100), a refundable security deposit, and a minimum balance to activate the tag.

They may waive the tag issuance fee, but other charges like security deposit and initial balance still apply.

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Written by Saumya Srivastava

10k Linkedin Followers Author dot Icon

Reviewed by Lokesh Shetty Author info Icon

A professional writer who loves delivering content that resonates, educates, and keeps readers engaged, making the often complex world of insurance more approachable and enjoyable. Beyond the pen, she is a passionate foodie at heart who believes in savoring life’s flavors in all aspects, whether it's a new dish or a well-crafted sentence.

Is FASTag Really Free of Cost?