The Ministry of Road Transport & Highways has issued a draft notification to make FASTag mandatory for old vehicles sold before 1 December 2017. It has also proposed making FASTag mandatory to buy a new third party motor vehicle insurance.
If implemented, the new rules will become effective in 2021.
In a statement on Thursday, MoRTH said that it has "notified draft notification GSR 541 (E) dated 1st September, 2020 to seek comments and suggestions from the stakeholders on making FASTag mandatory for old vehicles sold before 1st December, 2017. The amended provision in CMVR, 1989 is proposed to be put in force wef 1st Jan 2021."
"Further, it is proposed to make having a valid FASTag mandatory while getting a new 3rd Party Insurance through an amendment in FORM 51 (certificate of Insurance), wherein the details of FASTag ID shall be captured. This is proposed to be put in force w.e.f. 1 April 2021," it added.
The government had made FASTag mandatory since 2017 for registration of new 4-wheeler vehicles and is to be supplied by the vehicle manufacturer or their dealers. It had further been mandated that the renewal of fitness certificate will be done only after the fitment of FASTag for transport vehicles. For National Permit Vehicles, the fitment of FASTag has been mandated since 1 October 2019.
FASTag is an initiative introduced by the National Highway Authority of India (NHAI) in association with National Payments Corporation of India (NPCI) for making automated payment deductions at toll plazas using prepaid rechargeable tags that work on RFID (Radio Frequency Identification) technology.