A clause seeking bank details under the new dealer-level vehicle registration system has triggered concern among buyers, who fear misuse of personal financial data. Though RTA officials say the information is optional, scepticism persists amid worries over potential auto-debit of traffic penalties
Published Date – 10 February 2026, 10:22 PM
Hyderabad: A surreptitiously incorporated clause seeking bank details for registering vehicles as part of the recently introduced dealer-point registration, has led to consternation among vehicle owners. Apprehensions are being raised over the controversial move for vehicle registration as it comes in the backdrop of recent comments of Chief Minister A Revanth Reddy on directly debiting penalties for traffic violations from bank accounts.
Though the Regional Transport Authority (RTA) officials have tried to allay the apprehensions saying the details are optional, many vehicle buyers are not convinced. It is learnt that dealers are also facing resistance with many vehicle buyers not willing to share banking information.
Questions are raised on the rationale behind linking banking details, including account number and IFSC code, to vehicle registration. Fears are also expressed over the possible misuse of personal financial information. A dealer revealed that some vehicle buyers confronted them demanding to know the purpose and usage of seeking bank information.
After the State government brought in the dealer-level vehicle registration starting from January 24 this year, some buyers objected to the clause in the registration application.
While the RTA authorities say vehicle buyers are not required to mandatorily submit their bank account details, their reasoning behind the provision turns out to be feeble. “Vehicle owners often fail to inform the department after relocating, and banking information would help in updating owner records, particularly residential addresses,” a senior official tried to explain.
Officials also vainly reiterated that the information collected will not be linked to automatic recovery of traffic penalties, dismissing speculation surrounding auto-debit of challans. This has not convinced many who remain reluctant to provide their banking details for registering vehicles and have also voiced concerns at such a move.
Since the introduction of showroom-based registration, at least 3,000 vehicles have received temporary registrations in the city. Permanent registration will be processed after the completion of the one-month temporary period.
