The National Highways Authority of India (NHAI) is contemplating discontinuing cash transactions at National Highway fee plazas across the country from 1 April 2026.
If implemented, all toll payments will be processed exclusively through digital modes such as FASTag and Unified Payments Interface (UPI).
According to a statement by the Ministry of Road Transport and Highways, the move is aimed at developing a fully digital National Highway tolling ecosystem and strengthening the efficiency and reliability of fee plaza operations.
The transition is expected to enhance ease of commuting by improving lane throughput, reducing congestion, and ensuring greater consistency and transparency in toll transactions.
Over the past few years, FASTag penetration has crossed 98 per cent, significantly transforming toll collection practices nationwide.
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Most toll transactions are now processed electronically through RFID-enabled FASTags affixed to vehicles, enabling seamless and contactless movement across plazas.
In addition, UPI payment facilities have been operationalised at National Highway toll plazas to provide instant and accessible digital payment options to commuters.
Under existing National Highway fee rules, vehicles entering a fee plaza without a valid and functional FASTag are charged twice the applicable user fee if payment is made in cash. Users opting to pay via UPI are charged 1.25 times the user fee for the relevant vehicle category.
These measures have already reduced dependence on cash transactions and accelerated digitisation of the tolling framework.
Plaza-level assessments indicate that cash-based payments contribute to congestion, longer waiting times during peak traffic periods, and transaction-related disputes.
A complete transition to digital-only payments is expected to improve operational efficiency, traffic management, and overall user experience across more than 1,150 fee plazas on National Highways and Expressways in the country.
The proposal aligns with NHAI’s broader objective of developing a technology-driven, high-efficiency National Highway network that delivers faster and more seamless services to road users nationwide.
