Introduction To The Motor Vehicles Aggregator Guidelines 2025
The Ministry of Road, Transport and Highways, in July 2025, introduced the new Motor Vehicle Aggregator Guidelines 2025, providing much-needed updates to the regulations for vehicle aggregators in India. These guidelines are designed to govern the operations of vehicle aggregators, including ride-hailing platforms, food delivery services, and operators of two-wheeler and four-wheeler vehicles. If you are from the ride-hailing/ride-sharing industry or want to venture into this space, here is all you need to know about these guidelines.
In 2020, MoRTH first introduced the Motor Vehicles Aggregator Guidelines (MVAG) to provide a regulatory structure for India’s fast-growing shared mobility industry. With increased demand for more diverse and flexible mobility options, including electric vehicles (EVs), auto-rickshaws, and bike-sharing systems, the 2025 guidelines were updated to ensure they align with the latest trends in technology and consumer preferences.
Key Highlights Of The 2025 Motor Vehicle Aggregator Guidelines:
- Adaptation to Industry Evolution: Reflects significant developments in the shared mobility ecosystem, including introducing electric vehicles, two-wheeler services, and environmentally-friendly transport solutions.
- Focus on Safety and Welfare: Prioritises the safety of passengers and the welfare of drivers, ensuring protection for both while enabling seamless mobility.
- Sustainability Initiatives: Encourage the transition to electric vehicles (EVs), contributing to a greener mobility solution and reducing carbon footprints.
- State-Level Adaptation: States have been given three months to implement these guidelines, allowing room for local adaptations where needed.
Important Definitions Under The Motor Vehicle Aggregator Guidelines 2025
Aggregator
An aggregator is any entity providing a digital platform for connecting passengers and vehicles. Through a mobile app, these platforms allow passengers to book vehicles, whether for ride-hailing, food delivery, or other services involving motor vehicles.
App
App refers to the digital application developed and maintained by the aggregator. This platform is the interface through which passengers book rides, and drivers can offer their services.
Fare
Fare refers to the total amount payable by a passenger for availing services through the aggregator’s app. This includes the cost of tolls, taxes, parking fees, and any additional charges as specified in the agreement between the passenger and the aggregator.
Driver Fare
The Driver Fare is the portion of the total fare the driver receives for services rendered. It includes all costs, such as tolls and parking fees, that the driver incurs while providing the service.
Dynamic Pricing
Dynamic pricing refers to the adjustment of fares based on demand and supply. When ride demand exceeds supply (e.g., during peak hours), the pricing algorithm may increase the fare. However, the maximum dynamic pricing cannot exceed two times the base fare, ensuring some level of price control and fairness.
Induction Training Program
An Induction Training Program is a mandatory training that all drivers must undergo before being onboarded by the aggregator. The program includes training on:
- How to use the app.
- Key traffic regulations.
- First responder training for emergencies (such as road accidents).
- Sensitivity training, including gender sensitivity and Divyangjan (persons with disabilities) sensitivity.
Additional Key Definitions:
- Licence: A license issued to the aggregator by the competent authority under Section 93 of the Motor Vehicles Act, 1988.
- Security Deposit: The amount the aggregator must provide to ensure compliance with the guidelines may be a bank guarantee or an insurance surety bond.
- Grievance Officer: The officer appointed by the aggregator to address any complaints or grievances raised by passengers or drivers.
- Onboarding: The process of registering drivers and their vehicles on the digital platform provided by the aggregator.
- Off-boarding: Removing drivers and their vehicles from the aggregator’s platform.
Applicability Of The Motor Vehicle Aggregator Guidelines 2025
The Motor Vehicle Aggregator Guidelines 2025 apply to all aggregators operating in India. The following section outlines the scope and exclusions of these guidelines.
To whom do the MVA 2025 guidelines apply?
These guidelines apply to any aggregator operating within a state that:
- Offers a platform for connecting drivers with passengers for ride-hailing or delivery services.
- Aggregates two-wheelers, four-wheelers, auto-rickshaws, or any vehicle offering mobility or delivery services.
Aggregators must comply with these guidelines to operate legally and maintain a valid license issued by the state Competent Authority.
Entities Not Covered Under The Motor Vehicle Aggregator Guidelines 2025
Certain entities are excluded from these guidelines:
- Entities providing interoperable networks: These businesses facilitate networking among licensed aggregators but do not directly onboard drivers or vehicles onto their platform. They do not perform functions like fare management, driver-passenger interactions, or vehicle registrations.
- Public transport ticket aggregators: Businesses selling tickets for public service vehicles (like buses or trains) are not subject to these regulations.
Key Points to Note:
- The guidelines apply to all types of aggregated motor vehicles, including but not limited to ride-sharing and food delivery services.
- State Governments can adopt additional provisions, provided they align with the central framework.
Designated Portal By The Central Government
Under the Motor Vehicle Aggregator Guidelines 2025, the Central Government is tasked with developing and designating a single-window portal for the following purposes:
- Granting and renewing licenses for aggregators.
- Processing application fees, license fees, and security deposits required for operation.
- Allowing real-time updates of the aggregator’s compliance status and license validity.
This centralised portal will streamline the licensing process, making it easier for aggregators to apply for and renew their licenses, pay fees, and stay updated on their compliance status. Once operational, this portal will simplify state-level processes by providing a single, unified access point for aggregators to meet regulatory requirements.
Eligibility For Obtaining A Motor Vehicle Aggregator Licence
Under the Motor Vehicle Aggregator Guidelines 2025, the eligibility criteria for obtaining a licence are laid out to ensure that only qualified and capable entities can operate as aggregators. Here are the specific and detailed eligibility requirements:
1. Legal Entity Requirement
- The applicant must be a legal entity registered as one of the following:
- A company incorporated under the Companies Act, 2013.
- Limited Liability Partnership (LLP) or Cooperative Society formed under applicable laws.
- A partnership firm, provided it meets the compliance criteria under relevant laws.
2. Operational Compliance
Aggregators must meet operational standards outlined in the guidelines:
- They must ensure all vehicles they manage adhere to the Motor Vehicles Act, 1988 and Central Motor Vehicles Rules.
- Vehicle roadworthiness should be checked via a fitness certificate issued by the Regional Transport Office (RTO).
- The aggregator must have a functioning app that is compliant with data privacy and cybersecurity standards under the Information Technology Act, 2000.
- Vehicles must have GPS tracking devices, panic buttons, and emergency contact systems integrated into the app for real-time vehicle tracking.
3. Financial Standing
- The applicant must show sufficient financial standing to operate at scale. This includes:
- Proof of Financial Capability: Aggregators must submit financial statements or other documents showing their ability to cover operational costs, such as driver welfare, vehicle maintenance, and insurance.
- Net Worth Requirements: Depending on the scale of operations (number of vehicles), the financial capacity must be sufficient to cover security deposits and operational expenses.
4. Fleet Size and Coverage
- To be eligible for a licence, the aggregator must demonstrate its capacity to manage a minimum fleet size (this varies by state). This includes:
- Two-wheeler aggregators must manage at least 50 vehicles to be eligible for a licence.
- Four-wheeler aggregators must manage at least 100 vehicles.
- Aggregators must provide a breakdown of the types of vehicles they intend to operate (e.g., electric cars, two-wheelers, four-wheelers).
5. Compliance with Passenger Safety Standards
- The aggregator must ensure the following safety measures are in place:
- Vehicle Location Tracking Devices: Vehicles must have real-time tracking systems connected to the aggregator’s operations control room.
- Panic Button: All vehicles must have a functioning panic button, which must be easily accessible by both the driver and the passenger and linked to emergency services.
- First-Aid Kit: Each vehicle must carry a basic first-aid kit.
- Insurance: Vehicles must be insured with a third-party liability policy and driver protection insurance.
6. Data Protection and Cybersecurity
- The aggregator must ensure that all user data collected via the app complies with the Digital Personal Data Protection Act, 2023. This includes:
- Encrypted communication for sensitive passenger and driver data.
- Clear privacy policies that ensure users are aware of data collection practices.
- Cybersecurity measures are used to safeguard against data breaches and ensure secure transactions.
7. No Previous Violation or Cancellation of Licence
- The applicant must not have had its licence revoked or cancelled within the last 12 months due to violations of the previous guidelines or regulatory non-compliance.
- Disciplinary Actions: The aggregator’s compliance record is reviewed, and any penalties or previous infractions must be disclosed. Repeated violations may disqualify the applicant from obtaining a new licence.
8. Driver Welfare and Compliance
Aggregators must demonstrate that they have a robust driver welfare program that includes:
- Health Insurance: Aggregators must provide health insurance to drivers, with a minimum coverage of ₹5 lakh per driver.
- Training Program: All drivers must complete an Induction Training Program before being onboarded, which must cover:
- Traffic rules and regulations.
- Safety protocols for emergencies.
- Gender sensitivity and disability awareness are essential to ensure inclusive service for all passengers.
- Driver Background Verification: Aggregators must conduct thorough background checks, including:
- Criminal Record Verification: Ensuring drivers do not have a history of serious criminal offences.
- Medical Fitness: Drivers must pass a medical examination confirming they are fit to drive, particularly for vision and reflexes.
9. Technological Capacity
- The aggregator must have the necessary technological infrastructure to:
- Process online payments securely.
- Offer ride booking and fare management through a fully functional app.
- Ensure real-time monitoring of trips for safety and route optimisation.
- Provide customer support and grievance redressal through a dedicated system.
10. Environmental Compliance
- Aggregators must integrate environmentally-friendly vehicles into their fleet, particularly electric vehicles (EVs), as part of the government’s push for sustainability. The guidelines specify that:
- Aggregators should transition to EVs and green vehicles as part of the fleet, per state-specific EV policies.
Application For Grant Or Renewal Of Licence And Matters Connected Therewith
Grant Of Licence
The application for a new licence as a motor vehicle aggregator must be submitted on the designated portal (once operational). The application includes several essential components, as outlined below:
- Application Details:
- Form I must be submitted by the aggregator, including key details like:
- Business information (name of the aggregator, registered address, etc.)
- Number of vehicles proposed for operation.
- Details of key personnel in the company.
- Details of branch offices (if applicable).
- Certification of the company’s legal standing, such as a certificate of incorporation under the Companies Act or equivalent for a limited liability partnership or cooperative society.
- Form I must be submitted by the aggregator, including key details like:
- Required Fees:
- Application Fee: A fee set by the respective State Government must be paid online during the application process.
- Security Deposit: Aggregators must submit a security deposit, which will be held to guarantee compliance with the regulations. The amount of the deposit depends on the fleet size and type:
- Up to 100 vehicles: ₹10,00,000
- Up to 1000 vehicles: ₹25,00,000
- More than 1000 vehicles: ₹50,00,000
- Application Review:
- The state’s competent authority will review the application within 90 days of submission. The authority will check for compliance with all the eligibility conditions specified in the guidelines, including fulfilling the application requirements (details, fees, etc.).
- If the Competent Authority finds the application incomplete or fails to meet requirements, the application may be rejected. A formal hearing will address the reasons for rejection, and the applicant will be allowed to address the deficiencies.
- Issuance of Licence:
- Suppose the Competent Authority is satisfied with the application and all the necessary conditions have been met. In that case, a licence will be issued within 15 days after paying the required security deposit and license fee.
- The licence is issued for five years and is valid across the entire territorial jurisdiction of the state where the licence is granted.
Renewal of Licence
Licences issued to aggregators are valid for five years. To maintain their operations, aggregators must apply for their licence renewal. Here’s how the process works:
- Application for Renewal:
- The renewal application must be made at least 90 days before the current licence expires. The renewal application is made using Form II.
- The renewal application must include:
- Provide proof of compliance with the guidelines from the previous period.
- Records of any penalties or punitive actions the Competent Authority took during the licence period.
- Review and Renewal:
- The Competent Authority will review the application, focusing on the aggregator’s compliance with the guidelines and any previous infractions.
- If the aggregator has met all conditions and has not violated key regulations, the licence will be renewed for another five years.
- Renewal Fee: The renewal fee is ₹25,000 as specified in the guidelines.
- Failure to Renew:
- If the application for renewal does not meet the renewal conditions or if the aggregator has failed to comply with the guidelines during the initial license period, the Competent Authority may deny the renewal and require the aggregator to apply for a new license.
Key Points For Aggregators To Remember:
- One Licence per Aggregator: Aggregators need only one licence for all types of vehicles they operate (e.g., two-wheelers, four-wheelers, electric cars, etc.).
- Timely Application: Applications for new licences and renewals must be made on time to avoid disruptions in operations.
- Hearing and Rejection: In case of discrepancies or incomplete applications, the Competent Authority will conduct a hearing and provide the aggregator an opportunity to address the issues.
Important Timelines:
- 90 Days: This is for reviewing new applications and renewal applications.
- 15 Days: The license will be issued after paying the security deposit and license fee.
- 90 Days: Period for State Governments to process applications for granting a new licence.
Obligations Of Aggregators Under The 2025 Motor Vehicles Aggregator Guidelines
The Motor Vehicle Aggregator Guidelines 2025 impose specific obligations on aggregators to ensure passenger safety, driver welfare, vehicle compliance, and operational transparency. These obligations are essential for maintaining legal and ethical standards within the shared mobility ecosystem.
Passenger Safety and Driver Welfare
Aggregators must ensure that all vehicles have real-time GPS tracking systems and a panic button, essential for passenger safety. This tracking system must be connected to the aggregator’s control room to allow for real-time monitoring of vehicles. In addition, aggregators are responsible for ensuring that drivers undergo mandatory Induction Training Programs, which include safety protocols, first-response procedures, and gender and disability sensitivity training. Aggregators must also provide their drivers with adequate health and accident insurance, with minimum coverage of ₹5 lakh and ₹10 lakh, respectively.
Vehicle Compliance
All vehicles operated under an aggregator’s platform must meet stringent safety standards. This includes possessing valid fitness certificates from the Regional Transport Office (RTO) and Pollution Under Control (PUC) certificates. Aggregators must also ensure that third-party and comprehensive insurance policies cover all vehicles. To comply with government mandates on sustainability, aggregators are encouraged to transition their fleet to electric vehicles (EVs), which will become a progressively larger part of their fleets over time.
Grievance Redressal and Reporting
Aggregators must establish a grievance redressal mechanism, appointing a dedicated officer to resolve complaints within 15 working days. They must also submit periodic reports on their fleet, driver compliance, and accident records to the Competent Authority, which will conduct periodic inspections to ensure adherence to the guidelines.
Penalties For Non-Compliance With MVAG 2025
The Motor Vehicle Aggregator Guidelines 2025 outline penalties for aggregators who fail to comply with the established regulations. These penalties are designed to ensure that aggregators operate within the legal framework and maintain high safety, transparency, and operational integrity standards.
Types of Violations and Penalties
Aggregators found in violation of any key requirements, such as vehicle compliance, driver welfare, data protection, or operational safety, may face the following penalties:
- Monetary Fines: Penalties range from ₹1 lakh to ₹1 crore, depending on the severity of the violation. This can include violations related to the failure to maintain proper insurance, driver verification, or safety equipment.
- Suspension of Licence: In case of repeated non-compliance or serious violations, the Competent Authority may suspend the aggregator’s licence until corrective actions are taken.
- Revocation of Licence: The aggregator’s licence may be permanently revoked for continuous or severe violations, barring them from operating in the state.
Obligations For Aggregators Regarding Data Collection And Privacy
Data Protection and Security
Aggregators must comply with data protection regulations under the Digital Personal Data Protection Act, 2023. They are required to:
- Collect minimal data to provide services, including only essential personal information for drivers and passengers.
- Store data securely: All personal and transaction data must be encrypted and stored on secure servers. Aggregators must implement cybersecurity measures to prevent data breaches.
- Privacy Policy: Aggregators must maintain a clear privacy policy outlining the types of data collected, collection purposes, and user rights.
User Consent
Before collecting data, aggregators must obtain explicit consent from users (drivers and passengers) via the app interface. This consent should include:
- Informed consent regarding the collection, use, and sharing of personal data.
- Precise opt-in mechanisms for users to agree to data collection policies, including location data for ride tracking.
Data Sharing and Third Parties
Aggregators must ensure that user data is not shared with third parties without explicit consent unless required by law. Any data shared must be:
- Limited to what is necessary for the third party to perform its functions (e.g., insurance verification, payment processing).
- Monitored: Aggregators are responsible for ensuring that third-party service providers comply with data protection standards.
Inspection And Monitoring Of Aggregators’ Operations
Periodic Inspections
To ensure compliance with the Motor Vehicle Aggregator Guidelines 2025, aggregators will be subject to periodic inspections by the Competent Authority. These inspections are aimed at verifying:
- Vehicle compliance with safety and emission standards.
- Driver welfare measures include insurance, training, and background checks.
- Data security and privacy compliance.
Surprise Audits
The Competent Authority may conduct surprise audits without prior notice to ensure that aggregators adhere to the regulatory standards. These audits may include:
- On-site checks of vehicles and driver documentation.
- App reviews to ensure compliance with data protection laws and operational transparency.
Monitoring of Operational Data
Aggregators must provide the Competent Authority with access to real-time operational data, which includes:
- Ride data (e.g., vehicle locations, ride duration).
- Financial transactions (e.g., fare collection, commissions).
- Accident and incident reports.
This data will be used to monitor aggregator operations and compliance continuously.
Non-Compliance Penalties
If an aggregator fails an inspection or audit, the Competent Authority may impose:
- Fines are based on the severity of the violation.
- Suspension of operations until corrective measures are taken.
- Revocation of the licence in case of repeated or severe non-compliance.
Stay Compliant With The 2025 Motor Vehicle Aggregator Guidelines With Authbridge
Compliance with the Motor Vehicle Aggregator Guidelines 2025 is important for ensuring operational and legal adherence. AuthBridge, a leader in background verification, KYC solutions, and end-to-end third-party risk management services, offers an extensive suite of AI-driven services that effortlessly help aggregators meet regulatory requirements. From real-time driver verification and health assessments to vehicle compliance checks (RC, PUC, insurance), AuthBridge streamlines every step of the compliance process. Their automated solutions, such as AML screening, negative due diligence, and data security tools, ensure that aggregators maintain the highest safety, security, and transparency standards, protecting drivers and passengers while staying aligned with the latest legal frameworks.
Leveraging AuthBridge’s innovative platforms, such as OnboardX and iBRIDGE, aggregators can comply with KYC, data privacy, and grievance redressal regulations and significantly enhance operational efficiency. Real-time monitoring, automated reporting, and integrated grievance handling ensure businesses stay ahead of compliance requirements, reduce risks, and foster trust with their customers and regulatory authorities. AuthBridge has successfully helped some of the top ride-hailing platforms and food delivery services in India by providing solutions to reduce manual effort, improve compliance accuracy, and build a safer, more transparent mobility ecosystem.
Conclusion
As the Motor Vehicle Aggregator Guidelines 2025 shape shared mobility space in India, compliance with these laws is necessary for businesses looking to grow. By leveraging AuthBridge’s comprehensive suite of solutions, aggregators can effortlessly navigate regulatory challenges, ensuring complete adherence to the guidelines. From seamless driver background checks and vehicle compliance verifications to robust data protection and grievance redressal systems, AuthBridge empowers businesses to stay compliant while enhancing operational efficiency. With the expertise and technology AuthBridge provides, aggregators can focus on scaling their operations confidently, knowing they are meeting the highest safety, transparency, and legal compliance standards.
