New Delhi: National Highways Authority of India (NHAI) is considering discontinuing cash payments at highway toll plazas from April 1, requiring commuters to use only digital modes such as FASTag or Unified Payments Interface (UPI) for toll payments.
Post implementation, all toll payments at national highway fee plazas will be processed exclusively through digital modes, using FASTag or Unified Payments Interface, the National Highways Authority of India said.
The authority said it is contemplating completely discontinuing cash transactions at the national highway fee plazas across the country from April 1, 2026, in order to develop a fully digital national highway tolling ecosystem.
The proposed measure is aimed at consolidating the gains achieved in electronic toll collection and strengthening the efficiency and reliability of national highway fee plaza operations, it said.
The transition will help to enhance ‘Ease of Commuting’ for national highway users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency in toll transactions.
In the past few years, over 98% penetration of FASTag has significantly transformed toll collection practices in the country.
At present, an overwhelming proportion of toll transactions are processed electronically through RFID-enabled FASTag affixed to vehicles, facilitating seamless and contactless movement across toll plazas.
In addition, UPI payment facilities have been operationalised at the national highway toll plazas, ensuring availability of instant and accessible digital payment options for national highway commuters nationwide.
As per national highway fee rules, vehicles entering a fee plaza without a valid, functional FASTag are charged twice the applicable user fee, if the fee payment is made in cash. National Highway users who opt to pay via UPI are charged only 1.25 times of the user fee for the applicable vehicle category. These initiatives have collectively advanced the objective of reducing dependency on cash transactions and digitizing the tolling framework.
Plaza-level assessments indicate that cash-based payments contribute to congestion, increased waiting times during peak traffic periods and transaction-related disputes.
