There is a possibility of a major change in toll collection on national highways in the country. The National Highways Authority of India (NHAI) is preparing to completely stop cash transactions from April 1, 2026. After this, it will be possible to pay tolls at toll plazas across the country only through digital means like FASTag or UPI. This decision is part of NHAI's comprehensive plan to establish a digital tolling ecosystem.
Why stop cash transactions? According to NHAI's preliminary report, cash transactions increase vehicle congestion at toll booths. As a result, travelers have to wait long to pay tolls. In many places, cash transactions have led to disputes, confusion, and even altercations. Therefore, if only digital means are used, transactions will become transparent, disputes will be avoided, and traffic will flow smoothly. This decision could directly impact more than 1,150 toll plazas across the country. Currently, approximately 98% of toll collection is done via FASTag, and in many places, UPI payment facilities are also available, providing travelers with alternative digital options.
Digital Payment Rules
According to the National Highway Fee Rules, vehicles without FASTag have to pay double the amount when entering a toll plaza. Similarly, drivers paying via UPI are charged 1.25 times the amount. The proposed initiative is expected to speed up vehicle traffic at toll plazas, bring transparency to toll operations, and prevent financial misconduct, as clarified by NHAI. NHAI's digital tolling plan focuses on creating a high-performance, technology-based network. The final picture regarding implementation will be clear only after the official notification is issued. Nevertheless, it will be beneficial for travelers to start preparing for FASTag or UPI payments as soon as possible.
Tips for Travelers
Toll payment will be fast and easy for vehicles with FASTag.
An alternative option is available for those paying via UPI.
The new cashless rule will reduce vehicle congestion at toll booths, making travel more comfortable.