Say goodbye to toll booth jams: India launches GPS- based tolling

India is set to significantly enhance highway mobility by replacing the FASTag system with a groundbreaking GPS-based toll collection system, starting May 1, 2025.

The aim of this transition is to provide a smoother travel experience by eliminating long queues at toll booths, especially during peak hours.

The new system will use satellite technology to automatically detect the distance a vehicle travels, allowing tolls to be directly debited from drivers' bank accounts—removing the need for physical toll booths altogether.

This innovative shift is expected to not only improve the efficiency of toll collection but also reduce traffic congestion, enabling faster and more convenient travel for all road users.

As the nation transitions from the FASTag method to the GPS-based system, toll collection on India's highways is expected to increase significantly beginning May 1.

The new system is set to revolutionize national highway traffic.

Tolls will be automatically deducted from a driver’s bank account based on the distance traveled, using GNSS—a satellite-powered toll collection system.

According to Union Minister Nitin Gadkari, this method will be both more cost-effective and time-efficient.

While FASTag transactions are faster than cash payments, vehicles still need to slow down or stop at toll booths, often causing long queues during rush hours.

In contrast, GNSS enables virtual toll booths that communicate with satellites to track vehicle movements.

The system calculates tolls based on the vehicle’s location and distance traveled.

This technology eliminates the need for physical toll plazas and provides drivers with more flexible payment options.