Core Issue
The next hop router in the path toward the destination where the packets should be forwarded must be adjacent.
Resolution
Policy routing requires the next-hop ip address specified in the set clauses to be adjacent (directly connected) to the policy router. If the next-hop ip address is not on a directly connected subnet (sharing a subnetwork with the policy router), policy routing fails.
For more information, refer to White Paper Policy-Based Routing: The Need to Define Routing Policy.
Describe the next hop
Not directly connected
How PBR is Configured to Forward Packets
Setting the next hop IP address