Four-wheelers sold in the country from December 1 need to be fitted with FASTag, a device that uses radio frequency identification technology to automatically deduct toll charges without requiring motorists to stop at toll plazas to make payments, The Times of India reported.

The onus of fixing the devices on vehicles will be on manufacturers and dealers, the transport ministry said in a notification. Owners of trucks and buses need to get the smart tag installed before registering their vehicles, the daily added.

The system is at present operational at about 370 toll plazas across national highways, Moneycontrol reported. The device has a five-year validity and after purchasing it users need to recharge their account as per their requirement. A number of private and public sector banks such as State Bank of India, ICICI, HDFC, Syndicate Bank, and Axis Bank have partnered with the National Highway Authority of India to help motorists set up FASTag accounts.

The move is likely to help reduce congestion at toll plazas, and petrol consumption by idling vehicles, and speed up traffic, Mint reported. It is also in line with the Narendra Modi government’s push for digitisation and cashless payments.

“It is a step in the right direction and we as an industry are ready for it,” Vinod Aggarwal, the chief executive officer and managing director of VE Commercial Vehicles Ltd, told the business daily.