The National Highways Authority of India (NHAI) is considering discontinuing cash payments at highway toll plazas from April 1, 2026, making digital modes such as FASTag and Unified Payments Interface (UPI) mandatory.
Once implemented, all toll payments at National Highway fee plazas would be processed exclusively through digital platforms.
Move Towards A Fully Digital Tolling Ecosystem
According to NHAI, the proposal to eliminate cash transactions across National Highway fee plazas nationwide is aimed at creating a fully digital tolling ecosystem.
The authority said the measure would consolidate gains made under Electronic Toll Collection and enhance the efficiency and reliability of fee plaza operations.
Faster Movement, Less Congestion
The transition is expected to improve ‘Ease of Commuting’ for highway users by increasing lane throughput, reducing congestion at toll plazas, and ensuring greater consistency and transparency in transactions.
In recent years, FASTag penetration has crossed 98 per cent, significantly reshaping toll collection practices. Currently, a majority of toll payments are processed electronically through RFID-enabled FASTag stickers affixed to vehicles, enabling seamless and contactless movement.
Additionally, UPI facilities have been operationalised at National Highway toll plazas, offering instant and accessible digital payment options to commuters across the country.
Existing Fee Rules And Digital Incentives
Under National Highway fee rules, vehicles entering a fee plaza without a valid and functional FASTag are required to pay twice the applicable user fee if payment is made in cash. In contrast, users opting to pay through UPI are charged 1.25 times the applicable user fee for their vehicle category.
These steps have collectively reduced reliance on cash and advanced the digitisation of the tolling framework.
Operational Efficiency At Over 1,150 Plazas
Plaza-level assessments indicate that cash payments contribute to congestion, longer waiting times during peak hours, and transaction-related disputes.
A complete shift to digital-only payments, NHAI said, would strengthen operational efficiency, improve traffic management, minimise delays, and enhance the overall experience for users at more than 1,150 fee plazas across National Highways and Expressways nationwide.
