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Current Affairs

One Tag launched: FASTag users can now switch banks without replacing their tag

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The Union Minister for Road Transport and Highways launched the One Tag system on 11 September 2026, enabling FASTag users to switch their backend issuing bank without removing or replacing the physical FASTag sticker on their vehicle’s windshield. This digital portability system, similar to mobile number portability, allows vehicle owners to port their FASTag seamlessly via the Rajmarg Yatra mobile app. India has issued about 13 crore FASTags, with FASTag accounting for over 98% of toll transactions, facilitating cashless, faster toll payments on national highways. The One Tag system improves user convenience and is a step toward a fully integrated digital tolling ecosystem.

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Key Facts

  • The One Tag system was launched on 11 September 2026 at the Global Fintech Fest, Mumbai.
  • It allows FASTag users to switch their FASTag's issuing bank without needing a new tag or replacing the existing physical sticker on the vehicle windshield.
  • The portability process is facilitated digitally through the Rajmarg Yatra mobile app, managed by the National Highways Authority of India (NHAI).
  • FASTag uses Radio Frequency Identification (RFID) technology for automatic toll fee deduction linked to prepaid or bank accounts.
  • Approximately 13 crore FASTags have been issued in India, with digital toll collection covering more than 98% of national highway user fees.

Background & Context

FASTag has been a key initiative by the Indian government to automate toll collection at national highways, reducing congestion and promoting cashless payments. Before the One Tag system, switching banks required the user to close the existing FASTag account, purchase a new FASTag from the new bank, and replace the physical sticker on the vehicle's windshield. The One Tag system, developed through coordination among the NHAI, National Payments Corporation of India (NPCI), and Indian Highways Management Company Limited (IHMCL), enables easy and seamless switching of banks without physical replacement. This system supports the government's target of reducing average waiting time at toll plazas and is aligned towards implementing AI-driven barrier-free tolling systems for unhindered movement on highways.

Why This Matters for Exams

This development highlights significant government efforts in digital transformation and fintech integration in transport infrastructure. It illustrates the evolving landscape of digital payments and interoperability initiatives under the National Electronic Toll Collection system. Exam questions may focus on the features and benefits of FASTag, the role of institutions like NHAI and NPCI, and the impact of digital toll collection reforms in India.

Points to Remember

  • One Tag system launched on 11 September 2026 by Union Minister Nitin Gadkari.
  • Allows bank switching for FASTag users without physical tag replacement.
  • The process is conducted digitally using the Rajmarg Yatra mobile app.
  • FASTag technology uses RFID to automate toll payments.
  • About 13 crore FASTags issued; over 98% of toll fees on national highways are collected digitally.
  • Supports government’s objectives of reducing toll plaza congestion and moving towards barrier-free tolling enhanced with AI.

Practice MCQs

Question 1

  1. 11 September 2026
  2. 15 August 2025
  3. 1 April 2026
  4. 26 January 2026

Answer: 11 September 2026

Question 2

  1. Rajmarg Yatra mobile app
  2. DigiLocker app
  3. UMANG app
  4. Mobile number portability app

Answer: Rajmarg Yatra mobile app

Question 3

  1. Over 13 crore
  2. 5 crore
  3. 20 crore
  4. 1 crore

Answer: Over 13 crore

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