Karnataka has collected the highest amount in penalties related to FASTag usage nationwide over a specific year, raising questions about the effectiveness of FASTag adoption and enforcement. This trend, while contributing significantly to state revenue, also highlights potential challenges for motorists navigating toll plazas.
The implementation of FASTag, an electronic toll collection system, aims to streamline traffic flow and promote cashless transactions. However, a substantial portion of FASTag revenue in Karnataka, and nationally, appears to be derived from penalties rather than standard toll payments. This situation prompts an examination of the factors contributing to these penalty collections and their broader implications for highway users.

Timeline of FASTag Implementation and Collection Data
The FASTag system has been a gradual rollout, with its nationwide enforcement beginning in February 2021. Electronic toll collection via FASTag saw significant growth, with a 46% increase in 2022. Data indicates that from April 2020 to March 2024, over 110 crore FASTag transactions occurred, totaling more than ₹1.79 lakh crore.
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Penalty Collections: A Closer Look
Recent reports indicate a notable trend in FASTag penalty collections. For the 2024-25 fiscal year, Karnataka reportedly collected ₹129.91 crore from motorists failing to use a valid, functional FASTag or those with invalid or damaged tags. This figure places Karnataka at the forefront of such collections, surpassing other states like Maharashtra (₹110.64 crore) and Uttar Pradesh (₹81.06 crore) during the same period. Gujarat, Tamil Nadu, Haryana, and Rajasthan also reported significant penalty collections, ranging from ₹62.35 crore to ₹78.59 crore.

Karnataka collected ₹129.91 crore in FASTag penalties in the 2024-25 fiscal year, the highest in India.
This implies a substantial number of vehicles encountered issues with their FASTag at toll plazas in the state.
Factors Contributing to Penalty Collections
The primary reasons for FASTag penalties are:
Non-use of FASTag: Vehicles not equipped with a functional FASTag.
Invalid or Damaged Tags: FASTags that are expired, damaged, or not properly affixed to the vehicle.
Insufficient Recharge: Tags that do not have adequate balance for toll payment.
Authorities have consistently advised highway users to ensure their FASTag is active, correctly installed on the windscreen, and sufficiently recharged to avoid penalties and delays. The penalty is typically twice the applicable toll fee for the vehicle category.
Officials emphasize repeated advisories for users to ensure FASTag validity, proper fixing, and adequate balance to prevent penalties.
State-wise Toll and Penalty Collection Comparisons
While Karnataka leads in penalty collections, the overall toll activity presents a different picture. For the fiscal year 2023-24, Uttar Pradesh reported the highest toll collection through Electronic Toll Collection (ETC) with ₹6,888.77 crore. Tamil Nadu and Karnataka ranked fifth and sixth, respectively, in ETC collections for the same period. Southern states, as a group, account for over 27% of the total toll activity in India.
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| State | FY 2023-24 ETC Collection (INR Crore) | Rank (FY 2023-24) | FY 2024-25 Penalty Collection (INR Crore) |
|---|---|---|---|
| Uttar Pradesh | 6,888.77 | 1st | 81.06 |
| Gujarat | Not specified | 3rd | 78.59 |
| Tamil Nadu | Not specified | 5th | 71.82 |
| Haryana | Not specified | Not specified | 71.67 |
| Rajasthan | Not specified | 2nd | 62.35 |
| Maharashtra | Not specified | 4th | 110.64 |
| Karnataka | Not specified | 6th | 129.91 |
The table above highlights variations in performance across states, with some leading in overall toll collection and others in penalty revenue.
FASTag System Adoption and Future Initiatives
As of February 2026, approximately 5.9 crore FASTags are active, out of 11.86 crore issued. Over 98% of user fee collection on National Highways currently occurs via electronic toll collection. Initiatives like the FASTag Annual Pass, priced at ₹3,000 for private vehicles, aim to offer smoother travel by allowing up to 200 toll crossings within a year. This pass is expected to reduce the need for frequent recharges.

The government is introducing measures like the FASTag Annual Pass to enhance user convenience and potentially reduce the instances that lead to penalties.
Expert Analysis and Official Statements
Officials from the National Highways Authority of India (NHAI) have stated that the objective behind the FASTag system and its enforcement is to ensure smoother highway travel, reduce the need for repeated recharges, and promote a fully cashless toll collection system. The penalties are designed to incentivize compliance and ensure the efficient functioning of the electronic tolling infrastructure.
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"The move is intended to make highway travel smoother, reduce repeated recharges, and promote a fully cashless toll collection system," stated NHAI officials regarding the FASTag system.
Conclusion and Implications
Karnataka's leading position in FASTag penalty collections underscores a critical aspect of the national electronic toll collection landscape. While the FASTag system is designed for efficiency, a significant revenue stream from penalties suggests that a considerable number of users may be facing challenges with its implementation or adherence. This situation necessitates a deeper investigation into:
The underlying causes for non-compliance or invalid FASTag usage in Karnataka.
The effectiveness of current awareness campaigns and enforcement mechanisms.
Whether specific infrastructure or operational issues at toll plazas contribute to penalty accrual.
Understanding these factors is crucial for refining the FASTag system, ensuring it genuinely serves its purpose of facilitating smooth, cashless transit, and mitigating undue financial burdens on motorists.
Sources Used:
Article 1: Karnataka tops India in FASTag penalties, collects nearly ₹130 crore in one year - Published Dec 21, 2025. https://newsfirstprime.com/karnataka/karnataka-tops-fastag-penalties-collects-nearly-130-crore-in-one-year-10928966
Article 2: Karnataka tops FASTag penalty collections in 2024–25 - Published Dec 20, 2025. https://www.thehindu.com/news/national/karnataka/karnataka-tops-fastag-penalty-collections-in-202425/article70419698.ece
Article 3: FASTag Toll Collection Report: FY 23-24 - Published Apr 16, 2024. https://motorfloor.com/blog/fastag-toll-collection-numbers-2024/
Article 4: Southern states account for over 27 per cent toll activity - Published Aug 2, 2025. https://www.newindianexpress.com/states/karnataka/2025/Aug/02/southern-states-account-for-over-27-per-cent-toll-activity
Article 5: Around 5.9 crore FASTags active in country against 11.86 cr issued so far: Nitin Gadkari - Published Feb 5, 2026. https://auto.economictimes.indiatimes.com/news/industry/around-5-9-crore-fastags-active-in-country-against-11-86-cr-issued-so-far-nitin-gadkari/127924654
Article 6: FASTag : Latest News Headlines, Videos and Photo Galleries on FASTag - Seen on Bing. https://www.business-standard.com/topic/fastag
Article 7: Gujaratis paid ₹84 crore via FASTag in four years - Published Aug 4, 2025. https://connectgujarat.com/travel/gujaratis-paid-84-crore-via-fastag-in-four-years-9625828