Buying a new car is exciting — but before you drive it onto a national highway, there is one small sticker that the law requires: your FASTag. Since 1 December 2017, a valid FASTag has been mandatory for every new four-wheeler at the time of registration in India. No FASTag, no registration. In most cases you will not have to chase it yourself — the dealer arranges it as part of delivery.
Still, it pays to understand exactly how it works in 2026, especially after a rule change that took effect on 1 February 2026. This guide walks you through who fixes the tag, what documents you need, roughly what it costs, and the common mistakes that get a brand-new car blacklisted at the toll plaza on day one.
Is FASTag really mandatory for a new car?
Yes. Under the Central Motor Vehicles Rules, vehicles in categories M and N (which cover cars, vans and commercial vehicles) manufactured on or after 1 July 2017 are required to be fitted with a FASTag. From 1 December 2017, the Ministry of Road Transport and Highways (MoRTH) made it mandatory for the registration of all new four-wheelers — the FASTag is supplied by the vehicle manufacturer or the dealer, and the registering authority (your RTO) verifies that the tag is fitted before issuing the registration certificate.
In practice this means a new car cannot be registered without a FASTag affixed to its windscreen. It is not an optional add-on or an upsell — it is a registration requirement. Separately, FASTag is mandatory to pass through National Highway toll plazas in the electronic (ETC) lanes, so even an older second-hand car needs an active tag to travel.
- Rule basis: CMVR (categories M & N, on/after 1 July 2017) + MoRTH mandate from 1 December 2017.
- Who enforces it: your RTO verifies FASTag fitment at the time of registration.
- Bottom line: no valid FASTag = no new-car registration.
Who actually fixes the FASTag — you or the dealer?
For a brand-new car, the dealer or manufacturer is responsible for fitting the FASTag at the point of sale, because the tag has to be on the windscreen before the RTO will register the vehicle. When you take delivery, ask the dealer to confirm three things: that the FASTag is affixed, which bank issued it, and that it is linked to your correct vehicle registration number.
There is one exception worth knowing. If a vehicle is sold as a drive-away chassis without a windscreen (common for some commercial bodies), the FASTag is to be fitted to the windscreen at the time the windscreen is provided. If for any reason your new car reaches you without a tag — or with a loose tag that was never activated — you will need to get one issued from an authorised issuer before you use a highway.
Documents you need to apply for a FASTag
If you do need to apply yourself (or you want a tag for another vehicle), the document list is short and fairly standard across issuers like SBI and other NETC member banks. Keep clear scans or photos ready to speed things up.
Requirements can differ slightly between a limited-KYC and a Full-KYC account, and the issuer may ask for clear photos of the vehicle from the front, side and rear showing the number plate. Always confirm the exact list with your issuer or partner before applying.
- Vehicle Registration Certificate (RC) — the single most important document; the tag is linked to this number.
- An officially valid ID/KYC document (Aadhaar, passport, driving licence or voter ID), and PAN where the issuer requires it.
- Address proof, if your KYC document does not already cover it.
- A passport-size photograph of the applicant.
- Photos of the vehicle (front, side, rear) clearly showing the number plate and windscreen, if the issuer asks.
- An active mobile number for the linked wallet and OTP.
What changed in 2026: the KYV rule
This is the most important 2026 update. For new FASTags issued from 1 February 2026, NHAI discontinued the mandatory KYV (Know Your Vehicle) process for the Car / Jeep / Van category. Earlier, owners sometimes had to complete a separate KYV step after the tag was issued. That routine step is now gone for these private four-wheelers.
Instead, the responsibility has shifted to the issuing bank: before activating a new FASTag, the bank must validate your vehicle details against the VAHAN database, and the earlier option of verifying after activation has been discontinued. Once validated and activated, you can start using the tag straight away. KYV may still be requested in specific problem cases — for example a loose tag, an incorrect issuance or suspected misuse. Important caveat: this relaxation applies to cars, jeeps and vans only. Commercial vehicles such as trucks, buses and multi-axle vehicles are not covered by it.
How much does a FASTag cost?
For a new car, the tag cost is usually built into your on-road price, so you may not pay separately for it. If you buy one yourself, the typical structure for a car (Class 4) is a small one-time issuance/joining fee plus a refundable security deposit, after which you load your own wallet balance.
As a rough 2026 guide, the one-time issuance fee is in the region of Rs 100, and the refundable security deposit for a car is commonly around Rs 150–200 — figures that vary by issuing bank and vehicle class and that do change over time. Treat these as indicative only and confirm the current amounts with your issuer or with us before paying. CareAll handles new tag issuance, recharge and KYC quickly over WhatsApp — 90420 10180 — with new tags couriered in 1–3 days.
If you drive the same highway stretches often, also consider the FASTag Annual Pass for private (non-commercial) cars, vans and jeeps. It is priced at Rs 3,075 from 1 April 2026 (up from Rs 3,000) and covers up to 200 toll crossings or one year, whichever comes first, across 1,150-plus NHAI fee plazas on national highways and expressways. It is bought through the official Rajmargyatra app / NHAI channels, and your car must already have an active FASTag linked to its registration number. It is not valid at most state-run toll plazas.
- One-time issuance/joining fee: in the region of Rs 100 (varies by issuer).
- Refundable security deposit (car): commonly around Rs 150–200 (varies by class and issuer).
- First recharge: your choice — you control the wallet balance.
- Optional: Annual Pass Rs 3,075 (from 1 Apr 2026) for up to 200 trips or one year, private cars/vans/jeeps only.
Avoid these common new-car FASTag mistakes
A new tag can be effectively blacklisted on day one if the basics are wrong. A vehicle that enters an electronic toll lane without a valid, active, properly affixed FASTag can be charged double the toll. A few simple checks save you that headache.
Under NHAI's 'One Vehicle, One FASTag' policy, each vehicle should carry exactly one tag, and one tag must not be used across multiple vehicles. Always stick the FASTag firmly on the inside of the windscreen — holding it loose in your hand at the plaza can get it flagged or blacklisted.
- Confirm the tag is linked to your exact registration number (not a temporary or chassis-only number).
- Keep enough wallet balance — low balance is a top reason for failed transactions and double-toll.
- Do not keep an old tag from a previous car active on the same windscreen — one vehicle, one tag.
- Affix it properly on the windscreen; never hold a loose tag up at the toll lane.
- Keep your mobile number and KYC details current with the issuer.