NHAI Plans to Make National Highway Toll Plazas Fully Cashless from April 1
Proposal seeks exclusive FASTag and UPI payments to improve efficiency and reduce congestion at toll booths.
New Delhi (PTI): The National Highways Authority of India (NHAI) is considering phasing out cash payments at National Highway toll plazas across the country from April 1, 2026. Under the proposal, commuters would be required to make toll payments only through digital modes such as FASTag or Unified Payments Interface (UPI).
If implemented, all user fee transactions at National Highway toll plazas would be processed exclusively through FASTag or UPI, marking a significant step towards a fully digital toll collection system.
According to NHAI, the move is aimed at consolidating the progress achieved under the Electronic Toll Collection system and further enhancing the efficiency and reliability of toll plaza operations. The authority believes that a complete shift to digital payments will improve lane throughput, reduce congestion, and ensure greater transparency and consistency in toll transactions.
Over the past few years, FASTag adoption has crossed 98 per cent, transforming toll collection practices nationwide. Most toll payments are currently made electronically through RFID-enabled FASTag stickers affixed to vehicles, allowing seamless and contactless passage through toll gates.
Additionally, UPI payment facilities have been introduced at National Highway toll plazas, offering commuters instant and convenient digital payment options.
As per existing rules, vehicles entering a toll plaza without a valid and functional FASTag are charged double the applicable toll if payment is made in cash. In contrast, users opting to pay via UPI are charged 1.25 times the standard toll for their vehicle category.
NHAI stated that cash transactions at toll plazas often lead to longer waiting times, especially during peak hours, and can result in disputes. Eliminating cash payments altogether is expected to improve traffic management, minimise delays and enhance the overall travel experience for users at more than 1,150 toll plazas across National Highways and Expressways in India.
