New FASTag Rules Take Effect Today: How to Prevent Penalties and Blacklisting

The National Payments Corporation of India (NPCI) and the Ministry of Road Transport & Highways have rolled out new FASTag rules, which come into effect today, February 17, 2025. These revised guidelines aim to enhance the efficiency of toll payments, minimize disputes, and ensure smoother transactions across India's toll plazas.

These changes primarily target users who either delay payments or have blacklisted FASTags. Stricter regulations regarding transaction processing and chargebacks are also being introduced, with the goal of reducing bottlenecks and improving user experience.

FASTag Rule Changes: Key Updates

Penalties for Delayed Transactions and Insufficient Balance

FASTag users could face additional charges if toll transactions are processed more than 15 minutes after the vehicle has passed the toll reader. The updated guidelines under the National Electronic Toll Collection (NETC) system specify that in cases where there is a delay, and the user's FASTag account holds insufficient funds, the toll operator will bear responsibility for the error.

However, if users notice a deduction despite an insufficient balance, they are allowed to challenge the charge. But there's a catch: the dispute can only be raised after a mandatory 15-day cooling-off period.

Revised Chargeback Process and Cooling-Off Period

As part of the new regulations, banks now have the ability to raise chargebacks for incorrect deductions due to blacklisted or low-balance FASTags. However, the chargeback can only be processed after a 15-day cooling-off period. Any chargeback attempts filed before this period will be automatically rejected and will return a system error code (5290 - Cooling period not completed).

The date for the implementation of these changes in the NETC system will be communicated separately.

FASTags Transaction Rejection: What You Need to Know

Declining Transactions from Inactive or Blacklisted Tags

A significant update pertains to FASTags that are inactive, blacklisted, or hotlisted due to insufficient balance. If a FASTag remains inactive for more than 60 minutes before a vehicle crosses the toll booth, or up to 10 minutes after the vehicle passes the toll reader, the transaction will be rejected. The rejection will display the reason code 176.

This new rule will be enforced starting from February 17, 2025.

New FASTag User Guidelines: How to Avoid Unexpected Charges

Steps to Prevent Transaction Failures and Penalties

To avoid incurring surprise charges and transaction failures, FASTag users should ensure their wallet holds enough balance before starting their journey. It's also recommended to keep track of the transaction timings to ensure no delays occur.

If a charge is incorrectly deducted, users must adhere to the 15-day cooling-off period before filing a dispute. It is also essential to stay updated on the status of their FASTag account to avoid rejections stemming from inactivity.

Conclusion:

The new FASTag rules, which take effect today, February 17, 2025, bring significant changes aimed at improving toll payment processes and reducing disputes. Users must be proactive in ensuring their FASTag accounts are well-maintained with sufficient balance to avoid penalties and transaction delays.

The revised guidelines emphasize the importance of timely processing, with penalties for delays exceeding 15 minutes, especially if the account balance is insufficient.

Additionally, the cooling-off period for chargebacks has been extended to 15 days, providing a window for users to address incorrect deductions. With the introduction of transaction rejections for inactive or blacklisted FASTags, it’s crucial for users to keep their accounts active and monitor their FASTag status.

Adhering to these new regulations will help avoid unexpected charges, improve the overall user experience, and ensure seamless toll transactions moving forward. Staying informed and prepared is key to navigating these changes successfully.