Toll collection only via FASTags laced with challenges, says expert

There has been a significant jump in payments via FASTags and the government is reportedly looking at doing away with cash transactions completely.

Samir Kanabar, Partner, EY India, feels that the move's success hinges on a number of factors, most importantly every state government's intent to embrace this change.

“There are a host of challenges. Implementation will also hinge on the decisions taken by the state governments. From a developer or operator's point of view, a cashless system would be an efficient step. The technology is available and will be able to generate more data and analytically beneficial for them. The challenges on implementing it smoothly will depend on how state governments embrace it," he told Moneycontrol.

He admitted that adoption of digital modes across all sections of the population is an area of concern.

“They will have to see that truck drivers and small operators are equipped. The transition time may see some teething problems. There has to be a proper awareness drive and give some exemptions to senior citizens. There will be exceptions and the authorities will have to factor in these things,” he said.

He, however, said it would be difficult to comment on the time the authorities would take to achieve the aim of going completely cashless at toll plazas.

The NHAI had decided to implement FASTag from December 1 last year but it met with a tepid response.

FASTag uses the Radio Frequency Identification system for direct toll payments from prepaid or savings account linked to it or directly from the toll owner. It is fixed on the windscreen of a vehicle. The number of FASTag users in the country crossed the two-crore milestone in November.