To create a fully digital National Highway tolling ecosystem, the National Highways Authority of India (NHAI) is considering discontinuing all cash transactions at toll plazas across the country starting 1 April 2026. After the rollout, toll payments at National Highway fee plazas will be accepted only through digital modes, such as FASTag and Unified Payments Interface (UPI).
This transition aims to build on the success of Electronic Toll Collection (ETC), improve operational efficiency, and ensure smoother, more reliable toll plaza operations nationwide.
FASTag adoption has crossed 98 percent in recent years, bringing about a major shift in tolling practices. Today, most toll transactions are conducted electronically using RFID-enabled FASTag tags, which allow contactless and seamless passage through toll plazas. Complementing this system, UPI payments have also been enabled at toll plazas, providing commuters with quick and convenient digital payment options.
Under existing National Highway Fee Rules, vehicles entering a fee plaza without a valid or functional FASTag are charged double the user fee if they choose to pay in cash. However, commuters opting to make toll payments via UPI are charged 1.25 times the applicable user fee. These measures have helped reduce reliance on cash and accelerate the shift to a digital tolling ecosystem.
Plaza-level assessments show that cash payments contribute significantly to congestion, longer waiting times during peak hours, and a higher incidence of transaction disputes. Moving to a completely digital payment regime is expected to enhance operational efficiency, streamline traffic flow, reduce delays, and improve the overall commuting experience at over 1,150 fee plazas on National Highways and Expressways across India.
This initiative aligns with NHAI’s broader vision of building a technology-driven, high-efficiency National Highway network that ensures faster, smoother, and more transparent services for road users nationwide.
