The National Highways Authority of India (NHAI) has proposed the complete discontinuation of cash transactions at national Highway toll plazas across the country from April 1, 2026. Once implemented, all toll payments will be made exclusively through digital modes such as FASTag and UPI. However, the proposal is yet to be implemented and is currently under consideration.
- Currently, cash payments draw 2x toll; UPI is charged at 1.25x
- Expected to make toll operations more efficient and reliable
Current toll collection system
FASTag penetration crosses 98 percent, with most payments already digital
Toll collection on National Highways is largely digital, with FASTag penetration crossing 98 per cent, according to the MoRTH. Most vehicles use RFID-enabled FASTags for automatic, contactless payments at toll plazas, while UPI facilities are also available as an alternative digital mode.
Under existing rules, vehicles entering a toll plaza without a valid FASTag are charged twice the applicable user fee if they pay in cash. Those opting to pay through UPI are charged 1.25 times the applicable fee for their vehicle category.
Rationale behind phasing out cash payments
Government says it will reduce congestion, delays, and improve efficiency
As per the MoRTH, assessments at toll plazas show that cash payments often lead to traffic congestion, longer queues during peak hours and disputes over transactions. The statement read, “A complete transition to digital-only mode of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall National Highway user experience.”
