When you sell a car or bike in India, the FASTag stuck to the windscreen is easy to forget, but it is still linked to your bank account and your name. If you leave it active, tolls the new owner racks up can be deducted from your balance, and the buyer cannot get a clean working tag for the vehicle until your old one is cleared. Handling the FASTag properly is as important as transferring the Registration Certificate (RC) and insurance.
This guide explains the one point most sellers get wrong: a FASTag is tied to a specific vehicle registration number, not to you, so in a sale you almost always close (deactivate) it rather than 'transfer' it. Below is exactly what to do, how your security deposit and balance are refunded, what changes with the FASTag Annual Pass, and what the buyer needs to do next. Figures here are indicative for 2026 and vary by issuer and vehicle class, so always confirm the current amount with your issuing bank or tag provider.
Close or transfer: which one applies when you sell?
This is the single biggest source of confusion. A FASTag is issued against one specific vehicle registration number, based on the RC. Under the NPCI NETC framework, a tag stays mapped to that vehicle and is not meant to be handed to another person's vehicle. So when ownership changes, you do not pass your FASTag to the buyer.
The 'Transfer FASTag' option you see in some bank and wallet apps is generally meant for the same owner moving a tag between two vehicles registered in their own name, not for handing a tag to a new owner who has bought your car. For a genuine sale, the correct action is almost always to close or deactivate your tag and let the buyer apply for a fresh one in their name. If you are unsure, confirm the exact process with your issuing bank, because the steps differ between issuers.
- You are selling the car to someone else: CLOSE / deactivate your FASTag.
- You are keeping the tag for another vehicle registered in your own name: a same-owner transfer may be possible, depending on your issuer.
- The buyer gets a brand-new FASTag against the vehicle once your tag is cleared; they do not inherit yours.
Why you must not just leave the FASTag on the car
Ignoring the FASTag during a sale creates real, avoidable problems for both sides. Because the tag stays linked to your prepaid balance and bank account, any tolls the new owner crosses can be charged to you until the tag is deactivated.
There is also a blocking problem for the buyer. Under the 'one vehicle, one FASTag' principle, a registration number is mapped to a single active tag, so leaving your old tag live makes it harder for the new owner to set up a clean tag for the car. When the new owner does apply, the system can flag the duplicate and the older tag can be deactivated or blacklisted against that vehicle number. Leaving it active can also expose you to misuse and the hassle of disputing charges later.
- Tolls crossed by the new owner may be deducted from your balance.
- Vehicle-tag mismatches and duplicates can get a tag deactivated or blacklisted by the issuer.
- The buyer cannot cleanly activate a new tag against the same registration number while yours is still live.
How to close (deactivate) your FASTag step by step
You close a FASTag through the bank or issuer that gave it to you (for example SBI, ICICI, HDFC, Axis, and others). Most issuers let you do this via the customer-care helpline, the bank's FASTag portal or app, or in person at a branch. SBI FASTag holders, for instance, can request closure through the SBI FASTag customer portal and the helpline 1800 11 0018; settle any pending dues first, because closure and the refund are calculated from a cleared balance.
A typical closure flow is below. The exact screens and helpline differ by issuer, so if you are unsure which bank issued your tag, check the bank logo printed on the tag itself or the SMS or email you received when it was activated.
- Keep ready: your FASTag ID / tag number, vehicle RC, and your ID proof; closure can fail if KYC is incomplete or expired.
- Contact your issuer: call its FASTag customer care, use the bank's NETC FASTag portal or app, or visit a branch.
- Request 'Account Closure' or 'Close FASTag', state the reason (vehicle sold), and submit the required documents.
- Ask the issuer to confirm in writing (SMS or email) that the tag is deactivated and removed against your vehicle number.
- Physically remove and destroy the old tag sticker from the windscreen so it cannot be reused or read at a plaza.
Getting your security deposit and balance refunded
When you close a FASTag, you are generally entitled to a refund of the refundable security deposit (where one was charged) plus any unused prepaid wallet balance, after deducting pending tolls or dues. With SBI, for example, the security amount depends on the vehicle class and is refunded to your linked account at the time of closure, provided the tag is not blacklisted. The refund is credited back to your bank account.
Refund timelines vary by issuer and payment mode. Many banks process it within roughly 7 to 15 working days from successful deactivation, and some issue a demand draft to non-account-holders instead of a direct credit. Note that the one-time tag issuance or joining fee is typically non-refundable; only the security deposit and remaining balance come back. Do not quote a fixed rupee figure to a buyer; confirm your exact refundable amount with your issuer at the time of closure.
- Refundable: security deposit (if charged, often by vehicle class) plus unused wallet balance, minus pending dues.
- Usually NOT refundable: the one-time issuance or joining fee.
- Typical credit window: roughly 7 to 15 working days, issuer-dependent.
- Always clear pending tolls first; an unsettled or negative balance can stall the closure.
What about the FASTag Annual Pass?
The FASTag Annual Pass was launched on 15 August 2025 at ₹3,000 and revised to ₹3,075 from 1 April 2026 for FY 2026-27. It is valid for one year from activation or up to 200 trips on National Highways and Expressways, whichever comes first, and is meant for non-commercial private vehicles such as cars, jeeps, and vans. If you bought it, there is an important catch when you sell: the Annual Pass is non-transferable and is valid only for the specific vehicle the FASTag is registered and affixed to. Using it on another vehicle can lead to deactivation.
That means a new owner cannot use your Annual Pass, and there is no refund for unused trips. Practically, the pass benefit ends with your ownership of the vehicle; the buyer, if they want it, must buy their own Annual Pass for the car after getting their own FASTag. Factor this into your sale price rather than expecting any money back on the pass.
- Annual Pass is tied to the vehicle and is non-transferable to a new owner.
- No refund is given for the unused portion or remaining trips.
- The buyer would need to purchase a fresh Annual Pass on their own tag if they want it.
What the new owner (buyer) must do
Once you have closed your tag and completed the RC ownership transfer at the RTO, the buyer should apply for a brand-new FASTag in their own name against the same vehicle. They will typically need the updated RC (in their name), KYC/ID proof, and a passport-size photo, and they can choose any issuing bank or authorised partner.
If you are the buyer, do not accept a car with the seller's old FASTag still active. Insist that the seller closes it and removes the sticker. Then get the RC transferred to your name and apply for your own tag so toll charges hit your account, not the previous owner's.