NEW DELHI, April 1, 2025 — In a move aimed at strengthening road safety and ensuring stricter enforcement of traffic rules, the Indian government has proposed a new draft regulation that would allow for the suspension of driving licenses (DL) for those who fail to pay e-challans within a specified period.
The policy seeks to address the low recovery rate of traffic fines, where only 40% of e-challans are currently being paid, according to official data. The new regulation could significantly change how traffic violations are handled and how non-compliance is penalized.
What the New Rule Proposes
Under the proposed draft rule:
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Drivers must pay their e-challan within three months of its issuance.
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Failure to do so will lead to the suspension of their driving license.
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If a driver receives more than three challans in a financial year, particularly for signal violations or reckless driving, their license could be seized for three months.
The rule is designed to deter habitual offenders and encourage prompt compliance with traffic regulations.
E-Challans Could Affect Your Insurance Premium
In addition to license suspension, the government is also considering linking e-challans to vehicle insurance. According to sources:
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Vehicle owners with two or more unpaid e-challans from the previous financial year may face higher insurance premiums in the following year.
This integrated penalty system aims to create a stronger incentive for motorists to pay their dues on time and drive responsibly.
Enhanced Use of Technology and SOPs
The government is stepping up efforts to enforce traffic rules using modern technology:
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Under Section 136A of the Motor Vehicles Act, the government plans to expand the use of CCTV cameras, speed guns, body-worn cameras, and automatic number plate recognition systems.
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The Supreme Court has directed 23 states and 7 union territories to submit progress reports on electronic traffic enforcement.
To improve accuracy and public trust in e-challans, the government is working on a Standard Operating Procedure (SOP) to ensure:
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Minimum technical standards for surveillance equipment
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Accurate and timely delivery of challan notifications to vehicle owners
Why Many Drivers Avoid Paying Challans
Experts believe the main reasons for non-payment of e-challans include:
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Delayed alerts or notifications
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Errors in challan details
The upcoming SOPs aim to rectify these issues and streamline the penalty process.
E-Challan Recovery Rates by State
Recovery rates for e-challans vary widely across Indian states:
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Delhi: 14%
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Karnataka: 21%
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Tamil Nadu & Uttar Pradesh: 27%
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Rajasthan, Bihar, Madhya Pradesh, Maharashtra, Haryana: 62–76%
These figures highlight the urgent need for a unified and stricter enforcement strategy nationwide.
Strengthening Road Safety Across India
The draft regulation is part of India’s broader mission to improve road safety. Several states have already taken proactive steps:
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Kerala, for example, has tightened driving tests to ensure only competent drivers are licensed.
As India continues to modernize its traffic enforcement system, the message is clear: Ignoring traffic challans may now cost you more than just a fine. Pay your dues on time, follow traffic rules, and help make roads safer for all.