You can no longer rely on a last-minute recharge for your FASTag, especially if it is blacklisted. The National Payments Corporation of India (NPCI) has changed the rules for checking FASTag balances.

Under these new rules, there are two important changes that every user should know. Experts say these changes are important because if you don’t follow them, your FASTag may not work properly.

If your balance is not validated in time, the FASTag reader at the toll plaza will show error code-176, and your toll payment may be rejected. This means you could face problems while crossing toll plazas.

Understand the new rule about FASTag validation

In a circular issued on January 28, 2025, NPCI stated, “Transactions that are presented shall be validated based on reader read time and the time at which the tag is placed under hotlist/low balance/blacklist. Transactions presented on tags which are not active for more than 60 minutes prior to reader read time and up to 10 minutes after reader read time shall be declined with reason code 176 …This shall be implemented effective February 17, 2025.”

What Does the New FASTag Rule Mean?

Vehicles in the FASTag system can be in two states: whitelisted or blacklisted.

A vehicle can be blacklisted for different reasons, such as:

• Not having enough balance
• Pending updates for KYC (Know Your Customer)
• A mismatch between the chassis number and vehicle registration number as per RTO records

In this circular, NPCI mentioned two important time limits:

• 60 minutes before the FASTag is scanned
• 10 minutes after the FASTag is scanned

60-Minute Window Before and 10-Minute Window After FASTag Scan

If a FASTag is hotlisted or on the exception list, it has a 70-minute window to fix the issue. This can be for reasons like low balance, KYC update, or a mismatch in the registration number. The 70 minutes include 60 minutes before the FASTag is scanned and 10 minutes after it is scanned.

A FASTag transaction will only be declined if the tag has been on the hotlist/exception list for more than 60 minutes when the user arrives at the toll plaza and remains on the list for at least 10 minutes after leaving. Otherwise, the transaction will be processed. This gives users a grace period to recharge their FASTags, avoiding unnecessary inconvenience,” said FinTech lawyer Utkarsh Bhatnagar, Partner, Cyril Amarchand Mangaldas.

Arun Moral, MD, Primus Partners has explained this above rule using three examples:

Scenario-1: “If the FASTag owner gets blacklisted at T1 hours and once the vehicle gets read at the toll plaza, the transaction would be declined (with reason code 176), and 2x the toll-fee would be recovered from the user due to blacklisting.

Scenario-2: If the FASTag vehicle gets read at a toll plaza at R1 hours and if the vehicle user was under backlisting, and the FASTag was recharged either 60 minutes before R1 or 10 minutes after R1, then the transaction is accepted and only 1x toll fee is collected instead of 2x toll fees.

Scenario-3: If the FASTag owner gets blacklisted at T1 hours and crosses the toll plaza, then he will be charged 2x the toll fee due to the FASTag blacklisting status; however, if the vehicle user recharges the FASTag within 10 minutes from the time of it being read at the toll plaza, then the owner is allowed to get a refund of the penalty charge of 2x the toll charge, and 1x thetoll fee would be charged to the whitelisted FASTag account.”

This table shows how the new rule will be implemented:

Source: NPCI circular

The impact of this new rule about FastTag validations for consumers

Arun Moral, MD of Primus Partners, says that this new rule will help toll plaza users a lot, especially those who get charged extra (2x the toll fee) because their FASTag was blacklisted. Under this rule, users can get a refund of the extra charge if they recharge their FASTag account within 10 minutes after it’s read at the toll plaza. Additionally, organizations like NPCI, IHMCL, and NHAI will get more information that can help them understand and manage earlier transaction issues, making it easier to track and fix problems.

Vipul Jai, Partner, PSL Advocates & Solicitors said “For consumers, this change means that managing the FASTag balances and status updates in advance is crucial to avoid unexpected toll payment failures. If a tag is marked as low balance or blacklisted for over an hour before reaching the toll plaza, the transaction will be automatically rejected, even if funds are added at the last minute. Similarly, if a tag is moved to the exception list just after passing the toll scanner, the payment will also be declined. This adjustment is likely to be aimed at enhancing the security and reliability of transactions, ensuring that payments are only proessed from active and valid tags”

“While this rule improves system integrity and reduces fraudulent transactions, it may also cause inconvenience for unaware consumers. Those who frequently reload their FASTag balance at the last moment may experience declined transactions and possible delays at toll booths.”

Abraham Koshy, Counsel, MVAC Advocates & Consultants: “The FASTag rule is a 60-minute rule that will decline transactions of FASTag accounts that have been inactive (due to hotlisting, blacklisting, or low balance) for more than an hour before reaching the toll plaza. While this may initially seem restrictive, the new system aims to create a smoother toll experience by drastically reducing unauthorised transactions and disputes. The other is a 10-minute rule that will decline transactions if the FASTTag account is blacklisted within 10 mintues after the toll transactions

“This will also ensure users are more diligent about maintaining adequate funds and keeping their FASTag accounts active to avoid any interruptions in their toll plaza transactions. Both the above changes are a welcome move that will ultimately help manage the congestion at tolls and create a more organised system on the highways.”

Also read: Power Shutdown In Over 40 Areas In Chennai For Maintenance Work On Thursday: TANGEDCO