No FASTag, No Stop: India Shifts to GNSS-Based Tolling from May 2025

India is planning for replacing FASTag with a newer technology called the GNSS (Global Navigation Satellite System)-based tolling system beginning on May 1, 2025, according to India's Union Minister Nitin Gadkari. This revolutionary change will introduce the concept of distance-based toll collection through satellite tracking and will eliminate toll plazas and providing the seamless "No FASTag and no Stop" experience for commuters.
Why India is Moving Beyond FASTag
Although FASTag drastically decreased cash transactions and congestion at toll booths it was not without its limitations:
- Annual losses of Rs850 crore because of tag Cloning as well as not observing (NHAI Audit 2023).
- 12-15% road congestion caused by defective RFID scanners in toll plazas.
- Fixed rates for tolls which means that users pay for the entire length of their trip, even if they only traveled part or all of it.
The brand-new tolling system based on GNSS is designed to solve these issues through: No physical toll plazas - Reduces bottlenecks and decreases CO2 emissions of idle vehicles. Pay-per-Kilometre Charges based upon the exact distance traveled, which makes tolls fairer. There is no FASTag dependency - Utilizes the onboard GPS equipment (OBUs) for automatic toll deductions.
How GNSS Tolling Works: A Tech Leap

The new system is built on:
- OBUs (OBUs) - Mandatory GPS devices that are connected with the IRNSS/NavIC (India's native Navigation System) and GPS.
- real-time tracking Roadside sensors and satellites record entries and exits on tolled highways.
- Automated Debits Tolls are taken from bank accounts linked to them as well as digital wallets.
- Instant receipts Users will receive an SMS or app-based confirmations of payment.
Pilot Tests Successful: Tests on Bengaluru-Mysore and Panipat-Hisar corridors were successful with 99.2 percent accuracy as per NHAI.
What Happens to FASTag Now?
- FASTag is valid until April 30, 2025.
- Beginning the 1st of May in 2025 automobiles must have OBUs that have been approved by the government in addition to removing FASTag sticker.
- Commercial vehicles as well as new passenger automobiles will be given priority in the first phase of launch.
Challenges and Solutions
Price: OBUs may initially cost between Rs1500 and 2,000 however, NHAI hopes to set costs at 11,000 by 2026.
Rural Access: Autorickshaws and rural users may lack GPS connectivity--offline payment options and subsidized OBUs are planned.
Privacy Issues: Data will be encrypted (via CERT-In) to protect against misuse.
The Future: No FASTag, No Stop
India's transition to tolling based on GNSS is a huge step towards greener, more efficient highways. With the elimination of toll plazas, the system is able to: Reduced 300+ millions of tonnes of carbon dioxide emissions by reducing idle. save commuters time and money on fuel. Eliminate the amount of toll fraud and revenue leakage.
Is this a seamless shift? The success depends on low-cost OBUs, digital inclusion and strong security measures for privacy.
ALSO READ: Airtel Partners with Blinkit for 10-Minute SIM Delivery