Aiming to increase digital and IT-based payment of fees through FASTags, Prime Minister Narendra Modi-led government has made FASTags mandatory for all four-wheelers from January 1, 2021.
The government has also made FASTag mandatory for buying third party vehicle insurance.
Following this new rule, all four-wheelers or M and N category of motor vehicles sold before December 2017 will have to opt for FASTags from January 2021 onwards, reported CNBC TV18.
Paytm aims for 100% growth in Fastags over the next 3 months
Under the new norms, a valid FASTag is mandatory while getting new third-party insurance through an amendment in FORM 51 (certificate of insurance). Through this, the government will capture the details of FASTag ID. However, this rule will be applicable from April 1, 2021, onwards.
Earlier in 2017, the government made the FASTag mandatory for registration of new four-wheeled vehicles. These FASTags are supplied by the vehicle manufacturers or their dealers.
Also, the renewal of fitness certificate will be done only after the fitment of FASTag for the transport vehicles. Since October 2019, the fitment of FASTag has been mandated for national permit vehicles.
Meanwhile, Paytm Payments Bank has enabled automatic cashless payments at 211 toll plazas across the country. The digital payments major had in its press statement said it has issued more than 5 million Fastags for vehicles.
The National Payments Corporation of India's (NCPI) latest data claims that 110 million transactions were reported on Fastags in September, while 27 banks together have issued more than 1.9 crore tags.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
