New FASTag transaction rules kick in from Feb 17: All you need to know before entering highways

The National Payments Corporation of India (NPCI) has modified rules for declining transactions under the electronic toll collection system, FASTag. The changes has come into effect from Monday, February 17, 2025.

In a circular dated January 28, NPCI said that transactions will now be validated based on when the toll reader scans the FASTag and the time the tag is marked under hotlist, low balance, or blacklist status. A FASTag can be blacklisted due to insufficient balance, pending Know Your Customer (KYC) verification, and discrepancies in vehicle registration details.

If a tag has been inactive for over 60 minutes before the scan or up to 10 minutes after, the transaction will be declined with reason code ‘176’.

In such cases, the vehicle will be charged twice the toll fee as a penalty.

What it means for FASTag users

• This means users cannot rely on a last-minute recharge if their FASTag has been blacklisted or has low balance for more than 60 minutes before arriving at the toll.

• However, if they recharge their account within 10 minutes of the transaction attempt, they may qualify for a refund of the penalty charge and will only need to pay the regular toll fee.

• By staying informed and managing FASTag balances proactively, highway users can avoid additional toll charges under the new validation rules.

• Users should also regularly update KYC details to prevent blacklisting.

However, the Ministry of Road Transport & Highways later clarified that all national highway toll plazas operate on ICD 2.5 protocol, which provides real-time tag status and users can recharge their FASTags at any time before reaching the toll plaza.

The NPCI has instructed member banks to update their systems accordingly and advised acquiring banks to inform toll plaza operators and system integrators.

FASTag, the electronic toll collection system implemented across highways, enables automatic toll payments through linked prepaid or bank accounts, helping reduce congestion and improve efficiency at toll booths.