January 1 onwards electronic payments through FASTag will only be accepted by all the lanes of National Highways. According to an official source as of now, about 25% of toll payment transactions are based on cash payments. People who don't have Fastags will have to use online wallets.

Nitin Gadkari, Union Minister for Road Transport, Highways, and MSMEs announced that FASTag is being made mandatory for all vehicles in the country from January 1 through amendments in Central Motor Vehicles Rules (CMVR) 1989, according to the release FASTag will be enforced from 1st of January, 2021. FASTag saves a lot of time and fuel since the vehicles don't need to stop at toll plazas to do the transaction. According to the Central Motor Vehicles Rules, 1989, since 1st December 2017, the FASTag is mandatory for all registered new four-wheelers and is to be supplied by the Vehicle Manufacturer or dealers. The renewal of the fitness certificate will only be done after the fitment of FASTag. The fitment of FASTag for National Permit Vehicles was mandated since 1st October 2019.

A valid FASTag is also mandatory to get a new 3rd Party Insurance through an amendment in FORM 51 wherein the details of FASTag ID will be captured.