The Union Minister for Road Transport and Highways launched the One Tag system on 11 September 2026 at the Global Fintech Fest 2026 in Mumbai. The facility allows FASTag users to switch the backend issuing bank without removing or replacing the physical sticker on the vehicle windshield.
FASTag and Electronic Toll Collection
FASTag is an electronic toll collection system that uses Radio Frequency Identification technology for automatic deduction of toll charges. It is linked to a prepaid or bank account and is used on national highways and selected expressways in India. Digital toll collection now covers more than 98% of national highway user fees.
How the One Tag System Works
The One Tag system works in a manner similar to mobile number portability. Vehicle owners can port their FASTag digitally by linking the existing tag to a new bank account through the National Highways Authority of India’s Rajmarg Yatra mobile app. Earlier, users had to close the old account, buy a new tag, and remove the old sticker before changing banks.
National Highways and Toll Management
The National Highways Authority of India manages tolling on a large part of the national highway network. The government has set a target to reduce average waiting time at national highway toll plazas to under 10 seconds by the end of the current financial year. The authority is also developing an AI-driven barrier-free tolling system for free-flow mobility without stopping at toll points.
Important Facts for Exams
- FASTag uses RFID technology for automatic toll payment at toll plazas.
- Mobile number portability allows users to retain the same number while changing telecom operators.
- The Rajmarg Yatra app is associated with the National Highways Authority of India.
- Global Fintech Fest is a major event for digital payments and financial technology in India.
Key Figures and Targets
About 13 crore FASTags have been issued in India. The One Tag system is part of the wider shift towards digital tolling and bank portability in highway fee collection.
