February 21, New Delhi — To develop a fully digital National Highway tolling ecosystem, the National Highways Authority of India (NHAI) is considering completely discontinuing cash transactions at National Highway fee plazas across the country from April 1, 2026. After implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or the Unified Payments Interface (UPI).
This proposed measure aims to consolidate the gains achieved in Electronic Toll Collection and strengthen the efficiency and reliability of National Highway fee plaza operations. The transition will help to improve the "Ease of Commuting" for National Highway users by increasing lane throughput, reducing congestion at fee plazas, and bringing greater consistency and transparency to toll transactions.
In the past few years, the widespread adoption of FASTag has significantly transformed toll collection practices in the country. Currently, a large proportion of toll transactions are processed electronically through RFID-enabled FASTags affixed to vehicles, facilitating seamless and contactless movement across toll plazas. In addition, UPI payment facilities have been operationalized at National Highway toll plazas, ensuring the availability of instant and accessible digital payment options for National Highway commuters nationwide.
According to National Highway fee rules, vehicles entering a fee plaza without a valid, functional FASTag are charged twice the applicable user fee if the fee is paid in cash. In contrast, National Highway users who choose to pay via UPI are charged only 1.25 times the user fee for the applicable vehicle category. These initiatives have collectively advanced the objective of reducing reliance on cash transactions and digitizing the tolling framework.
Assessments at the plaza level indicate that cash-based payments contribute to congestion, increased waiting times during peak traffic periods, and transaction-related disputes. A complete transition to a digital-only payment mode will strengthen operational efficiency, improve traffic management, minimize delays, and enhance the overall National Highway user experience at over 1,150 fee plazas on various National Highways and Expressways across the country.
This initiative aligns with the broader NHAI objective of developing a technology-driven, high-efficiency National Highway network that delivers faster, seamless services to National Highway users across the country.