Inter-state vehicle transfer requires mandatory paperwork, including getting a No Objection Certificate from the current Regional Transport Office (RTO). However, the central government is reportedly planning to simplify the process by removing the mandatory NOC process.
A committee, set by NITI Aayog, has recommended enabling the inter-state vehicle transfers through an auto-generated clearance system, reported Times of India citing sources.

Which means that individuals planning to sell their car or any other vehicle to someone from another state, or when they are planning to move to a different state, may not require NOC.
Govt Planning To Remove NOC For Inter-State Vehicle Transfer
The cumbersome process of inter-state vehicle transfer requires RC transfer, obtaining NOC, non-migration certificate, and completing other mandatory paper-work. If the new change comes into effect, vehicle owners will not require the mandatory NOC from state where the vehicle is currently registered for submission to RTO to the new state.
As the high-level committe, formed by NITI Aayog has submitted recommendations for the removal of NOC for inter-state vehicle transfer, the road transport ministry is working on the proposal, reported TOI. The reform, if implemented, will ease the process and also cut short the time to complete the inter-state transfer.
NOC Mandatory For Vehicle Transfer
As of now, it is important for the owners of motor cycle, scooters, cars, and other commercial vehicles to obtain an NOC for inter-state vehicle transfers. The document ensures that the vehicle has no pending road taxes, challans or other dues for the vehicle. Additionally, the owners are required to submit registration and fitness certificates along with tax receipts to the RTO.
Importance of NOC During Inter-State Vehicle Transfer
Inter-state vehicle transfer is one of the most common reason which requires inter-state vehicle transfer. NOC is required if the vehicle owner is changing, or the vehicle owner is relocating to a different location in a different state, or even in cases when it is auctioned.
How To Apply For NOC?
Vehicle owners can apply for NOC in two different ways. The first method is to complete all the steps at the RTO itself. Whereas, the second method is to apply for NOC online. Make sure that you have no pending traffic challans, tax payments pending on your vehicle.
To get a No Objection Certificate from the RTO, vehicle owners must submit several basic documents. Authorities use these papers to verify ownership, tax status and compliance with pollution rules before processing the NOC request.
The list includes a self-attested Registration Certificate copy, self-attested motor insurance copy and motor vehicle tax payment receipt. Applicants also need a pencil print of engine and chassis numbers, a valid PUC certificate, signature identification where required, plus self-attested identity and address proof copies.
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