How Do New FASTag Rules Affect Vehicle Owners? NPCI Responds

New FASTag Rules: The National Payments Corporation of India has updated the rules for FASTag payments in India, set to be implemented today (February 17). The new guidelines for the FASTag are aimed at controlling fraudulent activities on toll plazas, streamlining toll payments and minimise disputes. However, users may be charged double toll fees if they fail to comply with the new rules.

Why are the new FASTag rules implemented?

The updated rules for FASTag by the NPCI are being implemented as the toll plazas were allowing FASTags under exceptions. The exceptions consist of low balance/hotlist/blacklist conditions. Toll plazas were allowing the exception owners to pass through the toll, instead of stopping and getting cash.

What are the changes in the FASTag Rules?

The first change in the FASTag rule is to ensure that the vehicle with a FASTag in an exception state does not bypass the toll payment.

Will there be a “Double Penalty” charged?

According to the NPCI circular, there is no such automatic “double penalty” rule. The charges depend on the policies enforced by the toll plaza.

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Rules for FASTag exceptions:

The vehicles with FASTag Exceptions consist of tags that either have a low balance or are hotlisted or blacklisted. So the rules for the FASTag exceptions say if a user recharges the tag before reaching the plaza or within 10 minutes after, the tag may be accepted. However, this also depends on the technology that is being used at the toll plaza. According to the NPCI circular, there is no guaranteed penalty reversal process.

Why is a FASTag Blacklisted?

A vehicle’s FASTag can be blacklisted for various reasons. It can also be blacklisted if there is any discrepancy in the vehicle's registration or chassis number at the time of scanning at toll booths. Some of the common reasons for blacklisting of FASTags are if a user has insufficient balance, failed to update Know Your Customer (KYC) details, non-payment of toll taxes, and failure in payment.

Takeaways:

• Vehicle owners should always ensure that before reaching the toll plaza, the FASTag has sufficient balance and is active. 
• NPCI says the rule is not intended for consumers but for the FASTag ecosystem (banks, toll operators, etc.) to manage toll collections efficiently.