From April 1, commuters will only be able to pay for tolls using digital methods like FASTagor UPI, as the Highways Authority NHAI is considering banning cash payments at highway toll plazas. The National Highways Authority of India (NHAI) stated that after implementation, all toll payments at National Highway fee plazas will only be made digitally via FASTag or the Unified Payments Interface (UPI). In order to create a fully digital National Highway tolling environment, the authority stated that it is considering doing away with cash transactions at National Highway fee plazas nationwide starting on April 1, 2026. According to the statement, this proposed action aims to improve the efficiency and dependability of National Highway fee plaza operations while consolidating the advancements made in electronic toll collection.
By increasing lane throughput, decreasing traffic at charge plazas, and introducing more uniformity and clarity to toll transactions, the change will improve the "Ease of Commuting" for users of the National Highway. FASTag's 98% penetration rate over the last few years has drastically changed the nation's toll collection methods. Currently, RFID-enabled FASTags attached to cars handle the vast majority of toll transactions electronically, enabling smooth and contactless passage through toll plazas. Additionally, UPI payment facilities have been operationalized at National Highway toll plazas, guaranteeing that commuters across the country have immediate access to digital payment choices.
Vehicles entering a fee plaza without a valid, functional FASTag are subject to double the corresponding user fee, provided that the fee is paid in cash, in accordance with National Highway fee regulations. These initiatives have collectively advanced the objective of reducing dependency on cash transactions and digitizing the tolling framework. On the other hand, National Highway users who want to pay with UPI only pay 1.25 times the user fee for the relevant vehicle type. Cash-based payments are linked to traffic jams, longer wait times during rush hour, and conflicts over transactions, according to plaza-level assessments. At more than 1,150 charge plazas on different national highways and expressways across the nation, a full switch to digital-only payment methods would boost operational effectiveness, increase traffic management, reduce delays, and improve the overall experience of National Highway users.