New Fastag Rules - Effective From Aug 1, 2024

NPCI (National Payments Corporation of India) has announced a brand new set of guidelines effective from August 1, 2024, regarding FASTag’s fee standardization, and KYC process.

New Guidelines To Be Followed:

The Important New Guidelines released by NPCI, effective from August 1, 2024, is as follows:

• The Issuers Should Strictly Adhere to standard charges for tag issuance for VC04 class customers as such:

1. Issuance/Reissuance Fees - Rs. 100

2. Security Deposit - Rs. 200

3. Minimum Recharge - Rs 100

• Only vehicles with registered tags can make transactions. No transactions are allowed on unregistered tags.
• A hefty penalty of 10,000 will be imposed in case of wrong/improper tag affixation by the tag issuers.
• The NPCI/IMHCL can take the necessary steps to discontinue the issuer onboarding if the occurrences of such events exceed (improper tag affixation) 5%.
• A clear image of the vehicle (both front side and back side) should be uploaded while updating KYC. The tag affixation along with the VRN number is the responsibility of the Issuer Agent.
• In case, any mismatch in data or image occurs, the issuer agent will be penalised to pay 10,000 as a penalty.
• Newly purchased vehicle numbers should be updated within 90 days. If not, the tag will be moved to a low balance. If the VRN even with a low balance is not updated within 30 days, the tag will be closed (discontinued).
• The companies need to replace the five-year-old tag on a priority basis.
• The Tags without any transaction for three months will be closed.
• Vehicle number and Chassis number should be linked to FASTag.
• The KYC process should be done (Re-KYC) every 3 years for the FASTag customers, updating the KYC details.
• The vehicle database should be verified by FASTag service provider companies.
• Services like apps, WhatsApp and portals should be made available for KYC verification processes. 

Important Things To Take Note Of For The Users:

Though stricter rules and regulations are necessary for a smoother process, the new guidelines also make it difficult to function. 

• Risk Of Getting Blacklisted in case of breaching the rules.
• Making transactions compulsory at least once every three months, will make it difficult for vehicles that were meant for short travel distances which means no toll will be collected. This will lead to the discontinuation of the tag.
• Complications for users who have bought new vehicles or second-hand vehicles, as there is a deadline to update their vehicle number within 90 days, otherwise will have to face the risk of getting the tag discontinued.

Keeping the risks in mind, the user needs to be cautious and take necessary precautions to safeguard themselves from getting blacklisted and burdened with additional monetary expenses.