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The National Electronic Toll Collection (NETC) program, developed by the National Payments Corporation of India (NPCI), has introduced a highly efficient and interoperable solution for electronic toll payments across India. This initiative, commonly known as FASTag, is designed to simplify and expedite toll transactions, significantly enhancing the travel experience for motorists. It enables vehicles to pass through toll plazas without stopping and manually paying toll charges, facilitating cashless transactions using Radio Frequency Identification (RFID) technology. The core objective of the NETC system is to create a nationwide framework where FASTag users can pay tolls at any toll plaza in India, irrespective of which bank issued their FASTag or which bank manages the toll plaza.
The NETC FASTag system has undergone a remarkable transformation since its introduction in November 2016, evolving from a nascent electronic toll collection initiative with just 3 participating banks to a nationwide infrastructure cornerstone with 38 banks by March 2025. This growth trajectory reflects India’s commitment to transportation digitalisation, with tag issuance expanding exponentially from approximately 1.08 million tags in November 2016 to over 107 million by March 2025, representing a hundredfold increase in just over eight years. Transaction volumes show even more dramatic growth, beginning with unmeasured activity in November 2016 and reaching 379.1 million monthly transactions valued at ₹6,799.53 crore by March 2025. The system’s evolution can be characterized by distinct growth phases: an establishment period (2016-2018) with steady single-digit growth in transactions; an acceleration phase (2019-2020) where monthly volumes surpassed 100 million; a brief but significant disruption during April 2020 when COVID-19 lockdowns reduced transactions to just 10.26 million; followed by a robust recovery and expansion phase. The years 2021-2023 witnessed substantial growth as government mandates increased FASTag adoption, with transaction volumes regularly exceeding 300 million monthly by 2023. The system demonstrated remarkable resilience during the pandemic recovery, with transaction volumes not only returning to pre-pandemic levels but substantially exceeding them by late 2020. Particularly notable was the acceleration in tag issuance between December 2019 and January 2020, when the number of issued tags jumped from 1.17 million to 1.44 million, coinciding with the government’s push for mandatory FASTag usage at toll plazas. The system has maintained strong momentum in recent years, with consistent month-over-month growth in tag issuance throughout 2024-2025 and transaction volumes stabilizing around 380 million monthly in early 2025. This evolution represents a transformative success story in India’s digital infrastructure development, transitioning from a limited electronic toll collection system to a ubiquitous nationwide solution that has fundamentally changed how millions of citizens interact with transportation infrastructure daily.
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