The National Highways Authority of India (NHAI) had introduced RFID-based FASTag as the primary technology used for electronic toll collection (ETC) in 2014. In February 2021, the government made FASTags compulsory for all vehicles, ensuring a cashless and more efficient toll collection system across the country.

Advantages:

1. Reduced Congestion: ETC eliminates the need for vehicles to stop at toll booths, thus reducing traffic congestion. 
2. Reduced Waiting Time: Cuts down toll plaza congestion, saving up to 20 minutes per trip (MoRTH, 2022).
3. Faster Processing: The system automatically charges the toll, reducing the transaction time significantly compared to manual toll collection.
4. Lower Operational Costs: ETC requires fewer staff at toll booths, leading to cost savings for toll operators.
5. Better Revenue Collection: Automated systems reduce human error and the risk of cash leakage or fraud, ensuring better toll revenue management.
6. Environmental Benefits: Reduced idling time at toll booths results in lower emissions from vehicles, contributing to environmental conservation.

Limitations:

1. Technical Glitches: such as improper tag placement, reader malfunction, or weather conditions (e.g., heavy rain), leading to delays or disputes.
2. Inconsistent Implementation: Not all state highways have fully integrated FASTag lanes, which can be confusing for drivers traveling on mixed routes.
3. Network Dependency: FASTag is heavily reliant on internet connectivity for real-time transactions. Poor connectivity at certain toll plazas can lead to failed or delayed transactions.
4. Customer Support and Disputes: Some users have reported difficulties with resolving issues like incorrect toll deductions or recharging problems, pointing to the need for improved customer support infrastructure.
5. Double Charges for Manual Payments: Vehicles without a functional FASTag or insufficient balance are charged double the toll when paying in cash, which can be seen as punitive rather than encouraging for drivers still transitioning to the system.

Proposed changes to make the process seamless:

1. Transition to ANPR-Based Tolling: ANPR will allow vehicles to pass through toll plazas without any physical tag by capturing and recognizing license plates for automatic toll deduction.
2. Distance-Based Tolling (GNSS/GPS): Instead of paying at multiple toll plazas, vehicles would be charged based on the actual distance they travel on the highways. This system could eliminate the need for physical toll plazas altogether.
3. Integration with State Highways: Extending FASTag coverage to more state highways and city roads, ensuring that drivers can experience a fully seamless journey without switching between tolling systems.
4. Contactless and Mobile Payments: Enabling mobile apps for real-time toll payments or integrating FASTag with digital wallets and payment platforms (e.g., UPI, Paytm) for increased convenience.

Potential hazards of this transition:

1. Data Security Risks: Increased digitization raises the risk of cyber-attacks, where sensitive data like vehicle movements and financial details can be compromised.
2. Technical Glitches:  Any glitch in the RFID or GPS system could result in incorrect toll charges or unregistered toll crossings, leading to disputes.
3. System Downtime: Power failures or system crashes can disrupt the toll collection process, leading to traffic jams and user dissatisfaction.
4. High Cost leading to higher tax burden on citizens

Road transport carries around 87% of India’s passenger traffic and over 60% of India’s freight traffic hence seamless traffic management is essential for goal of $5 Trillion economy.