RC renewal for 15-year old car or bike to become costlier

Huge hike in vehicle registration charges likely

The Ministry of Road Transport and Highways (MoRTH) earlier this week issued a draft notification proposing a hike in the renewal fees of the registration certificate (RC) of 15-year-old vehicles. According to the notification, RC renewal for such vehicles will become expensive starting from October 1, 2021. This new rule is a part of the government’s overall plan to roll out a comprehensive vehicle scrappage policy.

Starting from October this year, car owners who are looking to renew the RC of their 15-year old car might have to shell out Rs 5,000, which is nearly eight times higher than what they pay currently. Those who want to renew the RC of their 15-year old motorcycle may have to pay Rs 1,000. Similarly, Rs 10,000 will be charged for renewal and grant of fitness certificate for medium goods or passenger motor vehicles and Rs 12,500 will be charged for heavy goods or large passenger motor vehicles. Additionally, owners will also have to pay a fee of Rs 200 if the RC is a smart card type issued or renewed in Form 23A. The draft also states that in case of delay in renewing RC, an additional fee of Rs 300 to Rs 500 penalty per month may have to be paid. If a fitness certificate is taken after the expiry, then an additional charge of Rs 50 per day will also be charged after the expiry.

The development comes close on heels of the voluntary vehicle scrapping policy announced in the Union Budget on February 1 for 2021-22 which provides for fitness test after 20 years for personal vehicles while commercial vehicles would require it after the completion of 15 years. The renewed registration of a 15-year-old vehicle will be valid for five years and will be renewable every five years.The Ministry has also asked stakeholders to submit feedback on their proposal within a period of 30 days.