FASTag issuance charges: explain each item

Picture a customer who asks, “How much is a FASTag?” You give one number. They pay. Two days later they’re back: “You gave me one price, but they took much more.”

That kind of argument can start when three different payments get lumped together under one word. There’s the cost of the tag itself, a security deposit, and the money that goes into the wallet for tolls. If you don’t separate them at the counter, the customer can’t tell what they paid for, and you can’t explain it later. This post walks through each one, using the published rules for cars, jeeps and vans.

What is the VC04 schedule?

VC04 is the vehicle class for Car/Jeep/Van. The NETC Procedural Guidelines v2.1, section 4.1.1 A(viii), reopened on 18 October 2026, give these standard entries for VC04 customers:

IHMCL’s circular dated 4 September 2024, item 2, visually checked on 18 October 2026, says VC-4 is Car/Jeep/Van and repeats those same three amounts. Its 10 September corrigendum changes the wording about the recharge convenience fee. It doesn’t replace that table.

A word of caution. Keep the vehicle class written next to the amounts whenever you show this to a customer. Don’t use it as the price for a truck, a bus or any commercial product. For those, ask the issuer for the schedule that applies to the actual vehicle. And if the quote in front of you differs from this table, ask for a dated explanation before you take any money.

How do the tag cost, deposit and recharge differ?

They’re three different things.

IHMCL’s FASTag user FAQ, checked on 18 October 2026, says the maximum tag cost is ₹100 including GST. The FAQ talks about the security deposit and the first recharge separately. So the sticker, the deposit and the recharge are not “the price of the FASTag” as one lump.

At the counter, show the customer the real breakdown: the issuance line, the line recorded as a security deposit, and the amount going in as recharge. Write your receipt the same way. One line saying “FASTag payment” makes it very hard to query one part later.

Here’s one more thing that confuses customers. The same IHMCL FAQ, as of 18 October 2026, describes a first recharge of ₹200 as an amount banks “usually” charge, depending on vehicle class. The class-specific VC04 rule says a ₹100 minimum, and the customer can add more if they choose. When someone shows you the general FAQ, explain the difference. Don’t call both numbers compulsory minimums.

What about the security deposit?

The deposit is its own entry. It isn’t a fee, and it isn’t recharge. So don’t rename it to make a quote look neater.

Ask where it shows up in the customer’s account information, and what the issuer’s terms say about how it’s treated later. Don’t promise that the deposit can be spent on tolls, moved to another vehicle, or returned on a certain day, unless the issuer’s terms say so. A customer who hears “you’ll get it back” from you will remember it, and they’ll come to you if the bank says something different.

Can an issuer add another threshold for VC04?

Not apart from the security deposit. NETC guidelines v2.1, section 4.1.1 A(ix), checked on 18 October 2026, say issuers can’t impose or keep a VC04 threshold other than the security deposit. IHMCL’s September 2024 circular also warns against extra threshold demands.

So what if a customer is told to keep another amount “blocked”, or to hold a compulsory extra balance? Ask the issuer what the basis is. Show the VC04 provision next to the itemised quote. Make sure the customer knows the difference between extra recharge they choose to add and an amount someone says is compulsory. If the answer doesn’t match the written quote, pause the payment and ask for an explanation through the official channel.

What must be shown before the customer pays?

Quite a lot, actually. NETC guidelines v2.1, section 4.1.1 A(x) to A(xi), reopened on 18 October 2026, say charges must be clearly disclosed before issuance and shown on the issuer’s website or portal. They also say printed customer information, with the charges, the issuer’s care number and email details, has to be available with PoS agents for handover.

So before the customer authorises anything:

• Show the charges information
• Say which issuer and which vehicle class it is for
• Confirm the recharge amount they want
• If a bundle or extra product is offered, ask which parts are required and which they can say no to

Don’t add a new component after the customer has agreed to the quote. If they show you a different published amount, compare the vehicle class, the product, the date of the document and the recharge choice before you decide who’s right.

GST needs care too. Use the tax wording that comes with the source. The FAQ’s maximum tag cost already includes GST, so don’t add tax on top of an inclusive line. And don’t build a new “official-looking” total by mixing numbers from the FAQ, an old screenshot and a payment page.

Is there a convenience fee on recharge?

Sometimes, in some payment channels. The Bharat Bill Payment System (BBPS) circular of 22 December 2023, attached to IHMCL’s September 2024 corrigendum, describes optional customer convenience fees for physical offline FASTag recharge. It caps that fee at ₹25.

That document is about payment channels. It isn’t an agent-pay schedule, and it doesn’t give you permission to add a charge to every payment. Keep any convenience fee separate from the amount credited to the tag, and let the customer see the total before they authenticate the payment.

How would you explain it in a minute?

Customers don’t want a lecture. They want to know where their money went. Here’s a short way to say it for a car, using the VC04 figures above as of 18 October 2026. It’s an example, so always use the numbers on the actual quote.

“There are three parts. The tag itself, which is the issuance fee, is ₹100. Then there’s a security deposit of ₹200, which is held separately. And then there’s the recharge, which is the money you’ll actually use at toll plazas. The minimum is ₹100, and you can put in more if you want to. Here’s the quote with all three on it.”

Then hand over the itemised quote and let them read it. If the quote on your screen shows something different from that, say so right away and ask the issuer for the reason before the customer pays. You’ll find it much easier to deal with a question at the start than an argument afterwards.

What if a customer shows you a different amount?

It will happen. A friend paid less. A website said more. Someone has a screenshot from last year.

Don’t wave it away, and don’t just agree. Open the document and compare four things: the vehicle class, the product, the date of the document and the recharge amount chosen. Many “different” numbers turn out to be a different class or a different recharge choice. If it’s a real difference, ask the issuer to explain it, and keep that answer with the transaction if the customer goes ahead.

What about optional bundles?

Sometimes an issuer or payment channel offers a bundle. Ask for a description of each part. Find out which part is needed for the service the customer chose, and which can be declined. Write down what the customer selected, including any extra recharge.

Don’t call an optional extra “a FASTag requirement” unless the terms say it is. And if a bundle changes how a deposit or balance is treated, get that explained in detail. Don’t borrow the terms of a similarly named product from a different issuer.

How do you check the receipt?

Look at the quote, the payment acknowledgement and the account record together. This table helps when a customer comes back with a question.

After payment, check that the wallet was actually credited, through the issuer’s channel. A payment debit alone doesn’t prove the recharge happened. If the result isn’t clear, keep the reference and ask the responsible provider to confirm the outcome before taking another payment.

If a line can’t be matched, say that plainly. Don’t invent a reason for it. And never change the original receipt afterwards just to make the numbers look consistent.

A quick example

This is made up, to show how it goes. A customer sees one combined amount on a quote and assumes all of it is the price of the sticker. Break it into named parts: issuance, deposit, recharge. Then ask where their chosen recharge is recorded. If nobody, including the issuer or seller, can explain a line, leave that line as unresolved and say so. Don’t point to the general FAQ to defend an amount whose purpose nobody can state.

What about your own agent costs?

That’s a different matter entirely. FASTag agent fees and commission are not published here. SiOnline shares the figures for your case on enquiry. Ask for them in writing before you pay anything.

For the business side, see the FASTag commission questions and the pricing information. Please don’t treat the customer’s issuance fee as the cost of becoming an agent, and don’t assume that collecting an issuance amount means it’s your income. For a SiOnline enquiry, use customer care. If a customer needs the issuer’s account explained, point them to the issuer and don’t offer a SiOnline number as the support desk for every bank.

Questions customers ask about the opening payment

Is the security deposit just another tag fee? No. Show it as its own entry and explain it using the issuer’s terms. Don’t promise it can be spent or refunded based on the label alone.

Does the customer have to put in extra recharge? No. Explain the minimum, ask whether they want to add more, and write down what they chose.

What if the wallet credit is less than expected? Compare the recharge they chose with the receipt and with the issuer’s credit record. Then ask the right provider to trace the payment by its reference. Don’t collect another amount until you know what happened to the first one.

When you’re ready to talk about your own terms, use the FASTag agent enquiry, and ask for the issuer’s customer-charge material separately so you can explain each payment properly.

Sources

• NPCI NETC Procedural Guidelines, version 2.1, reopened 18 October 2026.
• IHMCL September 2024 charges circular and BBPS corrigendum, reopened 18 October 2026.
• IHMCL FASTag user FAQ, reopened 18 October 2026.

Confirm current issuer instructions before acting.