Here are the top 10 facts on the new law:
Common offences like the use of mobiles, jumping traffic lights and driving on the wrong lane will be categorized as "dangerous driving".
Drivers will be fined Rs.10,000 for not giving way to emergency vehicles and Rs. 10,000 for driving despite disqualification. Taxi aggregators violating driving licences will be fined up to Rs. 1 lakh.
Drivers caught speeding will be fined Rs. 1,000-2,000.
For driving without insurance, there will be a fine of Rs. 2,000; those driving without helmets will have to shell out Rs. 1,000 and can face three-month suspension of their licence.
In case of any road offence by underage drivers, the guardian or owner of the vehicle will be held guilty; the penalty will be Rs 25,000 along with three years in jail and the registration will be cancelled.
For traffic violations, people will be fined Rs. 500 instead of Rs. 100. Those defying the authorities may have to pay a minimum penalty of Rs. 2,000 instead of Rs.500.
The penalty for unauthorised use of vehicles without a licence or driving without a license will invite a fine of Rs. 5,000. Those found driving despite disqualification will be fined Rs. 10,000.
The penalty for dangerous driving will be increased to Rs. 5,000 from Rs. 1,000. Drink driving could mean a fine of Rs. 10,000.
Overloading of vehicles will draw a penalty of Rs. 20,000.
Nitin Gadkari said the process of making a driver's license would be computerised and anyone, be it a minister or parliamentarian, would get their license only after passing online tests.