Paytm Launches FASTag Parking; Pros and Cons

What is a FASTag and who does it concern? 

FASTag is a Radio Frequency Identification enabled sticker hooked up on the windshields of automobiles. The Radio Frequency Identification technology is used to make the toll payments directly from the associate account of the toll remunerator, which is connected to the FASTag, whereas the vehicle is on the move.

It comes beneath the category of the National Electronic Toll Collection program that was launched by The National Payments Corporation of Bharat (NPCI), National Highways Authority of India (NHAI), and Indian Highways Management Company Limited (IHMCL).

How does a FASTag work?

When a vehicle passes through the ETC (Electronic Toll Collection), i.e., the path of the Toll Plaza, the Toll Plaza system obtains the FASTag details like vehicle category, Tag ID, etc., and hence, sends it for processing to the deed bank. The deed bank shall then send the request to the National Electronic Toll Collection (NETC) to cross-check the tag details.

The acquirer host can then calculate the suitable toll fare and initiate a debt request to the NETC system when the triple-crown validation of Tag ID from NETC. Then, the institution can debit the connected tag holder’s account and send an SMS heads-up to the tag holder. The institution shall then promote the response message to the NETC. If the response isn’t promoted within the provided time, the dealing wouldn’t be considered. The NETC system then additional notifies the response to the acquirer and also acquirer can inform the same to the particular toll system.

PAYTM and Delhi Metro Rail Corporation (DMRC) Partnership

On 13th September 2021, PAYTM (a digital services and financial payments company) and the Delhi Metro Rail Corporation (DMRC) entered into a partnership and launched the first ever FASTag based automobile parking service. The PAYTM Payments Bank LTD. recently released a statement wherein the Managing Director (MD) of Delhi Metro Rail Corporation (DMRC) was heard saying that this footsteo towards digitilazation was the need of the hour when the consumer is looking for contactless transactions. The company plans to expand the business throughout the country to benefit the citizens of India. 

Pros of Fastag

• The usage of FASTag helps to scale back the waiting time, fuel consumption, and vehicle overhead costs. 
• It helps to accommodate the increasing traffic present in all the lanes.  
• It eliminates the acceleration and the harmful emissions from vehicles.
• It reduces the mobbing and overcrowding of various vehicle types around the toll plazas.
• FASTag additionally reduces money handling that helps to reinforce the audit management by integrating the accounts.
• It additionally promotes digital payments and keeps checks on the vehicles passing by and also on the toll booths.
• FASTag even cuts back the value of storage and transportation of money and also the labor at the tollbooths.

Cons of Fastag

• Throughout the initial stages of implementation of FASTag, problems were occurred related to the RFID reader. Most of the time it was found to not be operating. Generally, hand-held devices might be faulty.
• If the server fails, it’ll lead to the failure of the machine-driven electronic deduction system which cannot record the payments generated at the toll.
• Toll plazas had at the beginning, employing a lot of staff for deducting toll. They tend to lose their jobs and become idle or unemployed as there will be no work for them to do.
• The owner’s registration and bank details shall be connected to the FASTag, thus if the owner sells the vehicle in the future, it’s not clear whether or not the new owners are going to be able to drive the automobile with the similar FASTag or will have to be compelled to get issued a replacement. 
• As it comes in the form of a tag, it may be stolen or get lost easily. In such a scenario, one shall inform the authority to block the FASTag account
• There have been several instances of charging the double amount of the initial amount because of technical glitches.  

The Take Back of Using FASTag 

FASTag is a way forward towards progress for the nation as it saves precious time of the passenger while reducing automobile snarl-up and gridlock on the roads. It also reduces a lot of time for transports carrying perishable in bulk amounts for trade from one state to the other. It also makes the government of India much for transparent as well as shows their accountability towards their citizens.