You Will Soon be Able to Pay Highway Toll Using E-Wallets
Govt in talks with wallet providers; e-tolling at 275 tolls to start on Monday
New Delhi: The government is planning to partner with digital wallet companies for its electronic toll service, a move that will allow highway users to pay through e-wallet accounts like those of Paytm and Mobikwik.
An e-tolling service is being launched at 275 toll plazas across the country on Monday. It will allow vehicles with FASTag cards, which were launched by the National Highways Authority of India (NHAI), to pass through the toll plazas without having to stop.
“We are looking at partnering with the digital wallets. The service of reloading these cards is currently available through two commercial banks, but we want to reach out to as many users as possible,” NHAI chairman Raghav Chandra told ET.
National Payments Corporation of India (NPCI) is building a national clearing house for efficient handling of inter-operability between banks, toll plaza operators and other entities. “Mobile phones have become the preferred mode of transaction for the younger generation, and younger people use digital wallets more than traditional banking. Tying with these modern-day technology companies will help us offer a better service,” a senior roads ministry official said. NHAI has tied up with ICICI Bank and Axis Bank for the service. The online payment is also aimed at bringing in transparency and plugging leakages in toll collection.
FASTag will facilitate cashless payment of toll fee and near non-stop movement of vehicles through toll plazas. It employs RFID technology for making toll payments directly from the prepaid account linked to it. The card has a one-time fee of .₹ 200.
The card will be available at selected toll plazas on national highways and designated branches of participating banks. These cards can be recharged by making payments through cheque or the internet. The minimum recharge amount is .₹ 100 and can go up to .₹ 1 lakh for commercial vehicles. NHAI will give 10% cash back incentive on toll payments for FASTag users.
The implementation of a panIndia electronic toll collection system on national highways could help save .₹ 87,000 crore every year, according to a study by the Transport Corporation of India and the IIM at Kolkata.
The study said the cost due to the time spent at toll points adds up to .₹ 27,000 crore a year.
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