No, FASTAG Is Not Getting Replaced By GNSS (GPS-based System) On 1 May: Govt Clarifies

Government Clarifies: No Nationwide GPS Toll Collection System Coming in May 2025

Over the past few weeks, there has been an buzz with all the talk of a major shift in how tolls would be collected on national highways. Rumours swirled that the government was about to scrap the FASTag system and roll out a satellite-based, GPS tolling system from May 1, 2025. The headlines promised a future where toll plazas would vanish, and payments would be seamless, based on the exact distance travelled.

But as the speculation reached fever pitch, the government stepped in to set the record straight.

Setting the Record Straight: No Nationwide GPS Tolling—Yet

On April 18, 2025, the Ministry of Road Transport and Highways (MoRTH) issued a clear clarification: there is no decision to launch a nationwide satellite-based tolling system from May 1, 2025. The Ministry emphasised that neither it nor the National Highways Authority of India (NHAI) had approved such a sweeping change to the toll collection process. The widely used FASTag system, which has been mandatory since 2021, will not be replaced by GPS-based tolling overnight.

This official statement brought relief to many who were unsure about the future of their highway journeys and how they would pay for them. The government’s message was simple—no need to rush out and install new devices or worry about abrupt changes at toll plazas.

What’s Actually Changing: ANPR-FASTag Hybrid System

While the much-hyped GPS-based tolling is not rolling out nationwide just yet, the government is indeed working on making toll collection faster and more efficient. The next step is the introduction of an Automatic Number Plate Recognition (ANPR)-FASTag hybrid system at select toll plazas.

This new approach blends two technologies. ANPR uses high-performance cameras to read vehicle number plates as they pass through, while FASTag relies on Radio-Frequency Identification (RFID) to automatically deduct toll charges from a linked account. Together, these systems aim to create a barrier-less, seamless tolling experience. Vehicles will be identified and charged without having to stop, reducing congestion and saving precious travel time.

For those who fail to comply with toll payments, the system will issue e-notices. Persistent violators could face suspension of their FASTag accounts and further penalties under vehicle regulations.

The Road Ahead: What Travellers Should Expect

For now, the FASTag system remains the backbone of toll collection across India’s highways. The ANPR-FASTag hybrid is being tested at certain locations, and its success will determine whether it is adopted more widely. The government is keen to learn from these pilots, gather user feedback, and ensure that any future transition is smooth and minimally disruptive.

The much-discussed GPS-based tolling system—where vehicles would be tracked via satellite and charged for the exact distance travelled—remains a vision for the future. When it does arrive, it promises to do away with physical toll plazas altogether, making highway journeys even more seamless. But as of now, there is no confirmed date for its nationwide launch.

Why the Clarification Matters

For the average highway traveller, the government’s clarification means business as usual. There’s no need to worry about sudden changes, expensive upgrades, or confusion at toll booths. The FASTag system, familiar and largely efficient, will continue to be the way tolls are paid.

At the same time, the gradual move towards smarter, more automated tolling—first with ANPR and eventually with GPS—signals the government’s commitment to making road travel smoother. When these changes do come, they’ll be rolled out thoughtfully, with clear communication and support for all road users.

In the end, while the headlines may have promised a revolution overnight, the reality is a steady, careful evolution. For India’s highway travellers, that means more time enjoying the open road—and less time worrying about how to pay for it.