Key changes from Feb 1: FASTag rules, Aadhaar for property registration, tobacco prices

From February 1, several significant changes will take effect across FASTag usage, land registration, banking and verification systems.

Also Read: What changes from January 1: Key policy and regulatory updates

The changes span tobacco taxation, highway toll compliance and the routine monthly revision of fuel prices. Banks will also enter a month marked by multiple holidays, which could limit branch access in certain states.

Excise duty on tobacco products

From February 1, newly notified duties will increase the tax burden on cigarettes and other tobacco products, as the Centre moves to impose central excise on a range of items, including cigarettes, chewing tobacco, gutkha and similar products.

These changes form part of a wider restructuring, under which February 1 has been designated as the commencement date for provisions under the Health and National Security Cess framework for pan masala, along with amendments allowing new excise levies.

A Finance Ministry notification has outlined duty slabs based on product category and cigarette length. For instance, non-filter cigarettes up to 65 mm will attract a duty of Rs 2,050 per thousand, with some categories going as high as Rs 8,500 per thousand.

According to reports, retail cigarette prices could increase by 15 per cent to 40 per cent from February 1, based on the notified duty structure and prevailing market expectations.

KYV scrapped for FASTag users

The National Highways Authority of India (NHAI) has decided to completely do away with the Know Your Vehicle (KYV) process linked to FASTag.

From February 1, no additional KYC verification will be required once a FASTag is activated. The responsibility for verifying vehicle details prior to issuing FASTags will now rest entirely with banks.

Under the revised system, banks will conduct comprehensive vehicle verification before activation. Vehicle details will first be matched with the official vehicle database, and where this information is unavailable, verification will be carried out using the vehicle’s registration certificate.

The same procedure will apply to FASTags purchased online, ensuring users do not face issues later. Previously, repeated KYC checks led to frequent document uploads, delays in verification and long waiting times at toll plazas. The new system aims to make FASTag operations more technology-driven and seamless, reducing delays at toll booths.

Aadhaar verification for property registration

From February 1, Aadhaar verification will become mandatory for land and property registration. Aadhaar authentication will be required not only for buyers and sellers but also for witnesses, and will be carried out on the spot during registration.

Also Read: What changes from October 1: Key financial and regulatory updates

Biometric machines have been installed at all sub-registrar offices and linked to the UIDAI server. Identity will be verified instantly through fingerprint authentication, and registration will proceed only after successful verification.

For elderly individuals or those whose fingerprints cannot be matched, face authentication will be available. Aadhaar-based OTP verification through registered mobile numbers may also be used where necessary.

This measure is expected to help curb property fraud involving the use of fake Aadhaar credentials.

Fuel price reset, bank holidays

Oil marketing companies typically revise LPG cylinder prices on the first day of every month, with updated rates due on February 1, coinciding with Budget Day.

Bank customers are advised to plan branch visits carefully, taking into account a mix of weekly closures and state-specific holidays.

Additional closures may occur for local observances such as Losar and Chhatrapati Shivaji Maharaj Jayanti in some states.