What is FASTag: Meaning, Benefits, and How Does it Work?

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Reasons Affecting FASTag Issuance Rates

If you’ve been wondering why FASTag charges vary despite being regulated and standardised under the NETC (National Electronic Toll Collection) program, well here’s what you need to know. The issuing banks have different fee structures that allow them to set different charges. Now, these charges may result from the following factors.

Security deposit

Most banks charge a nominal refundable fee in the form of a security deposit from the user. However, this amount can vary depending on the type of your vehicle and the specific policies of the issuing institution. It is redeemable against no dues at the time of account closure.

Issuance fee

This is a one-time registration charge levied by banks on users for issuing the FASTag, and it varies from one bank to another.

Minimum balance requirements

Every bank is required to maintain a certain minimum balance in the FASTag account, which varies across issuing authorities.

Convenience fees

Banks may levy different convenience fees for recharging your FASTag through different methods. Depending on whether you use credit cards, debit cards, UPI, or net banking, the convenience fee would vary.

Not only are the FASTag charges levied by different banks affected by the components detailed above, they could also be affected by the internal policies of the issuing bank, impacting the overall FASTag cost for its users.

Things You Should Consider When Shortlisting a FASTag Provider

Here are a few considerations for FASTag users seeking to make a comprehensive choice on which bank to select for funding their FASTag accounts.

Scout for banks that make your FASTag recharge process convenient. Popular banks facilitate recharging using mobile apps or authentic online portals, making recharging FASTag a quick and easy process.
Ensure that the selected bank provides customer-friendly assistance and a cutting-edge user interface that makes your FASTag transactions smoother, faster, and hassle-free.
Pay special attention to the chosen bank’s network coverage, as this will ensure wider acceptance across toll booths.
Don’t forget to check the digital proficiency of the issuing bank, as this will enable efficient management of your FASTag through digital platforms.
Make sure to compare the issuance fees, minimum deposit, and other charges from different providers before narrowing down on a bank for your FASTag transactions.

Issuing Authorities and FASTag Charges: A Comparison

While a large number of banks are associated with FASTag issuance, banks such as ICICI, HDFC, and Axis Bank have been gaining the spotlight for their digital prudence, seamless recharging options, and meticulous transaction alerts. Here’s a glimpse of FASTag charges from top issuers.

ICICI Bank charges ₹99.12 (inclusive of GST) as the tag joining fee for FASTag users. The security deposit is ₹200, whereas the minimum recharge amount is ₹100.

HDFC Bank charges ₹100 as the tag issuance fee, which matches the minimum deposit amount. However, note that the security deposit rate varies by vehicle type, with ₹200 payable for cars, vans, and jeeps.

State Bank of India doesn’t levy any tag fees or security deposit for a range of vehicles. This is applicable for vehicles including jeeps, vans, cars, and compact LCVs (light commercial vehicles). However, to activate your FASTag, you may need to maintain a minimum balance of ₹200.

Axis Bank users are liable to pay ₹100 each for tag issuance, reissuance, and as minimum charges, respectively. The bank charges ₹200 for class 4 vehicles.

Kotak Mahindra Bank charges ₹100 for VC4. While they don’t levy a joining fee for other vehicles, cars, jeeps, and vans have to pay ₹200 as a tag deposit along with ₹100 as the threshold amount.

If you are exploring more options, you can look up rate charts of other issuing authorities, such as Airtel Payments Bank, Punjab National Bank, IndusInd Bank, and IDBI Bank. This will help you find the most reasonable FASTag issuing charges that suit your pocket and cater to your vehicle’s tag needs.

Frequently Asked Questions

What are the different factors that determine a FASTag price?

When evaluating the cost of a FASTag, consider the price of the tag, security deposit, initial recharge limits and other charges levied by the issuing bank. Consider any available promotional deals that may waive the overall cost of the tag, effectively reducing the total expense.

Do some banks or issuers levy additional charges on FASTag?

Do some banks or issuers levy additional charges on FASTag?
Yes, some banks might levy additional charges. Hence, it is best to review the terms and conditions of the respective bank before buying your FASTag. These charges may include the tag joining fees, which vary depending on the vehicle class.

Do FASTags have a convenience fee?

Yes, FASTags may charge you a convenience fee when they are recharged through specific payment methods. Such transaction modes include credit cards and net banking. Hence, this could impact the amount payable for recharging your FASTag account; however, your toll payments will not incur a convenience fee.

Written by Saumya Srivastava

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Reviewed by Lokesh Shetty

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.