New Delhi: Cash payments at National Highway fee plazas are likely to be discontinued from April 1, 2026, as the National Highways Authority of India moves towards a fully digital tolling ecosystem.
Under the proposed plan, all toll transactions will take place only through FASTag or Unified Payments Interface. The authority aims to consolidate gains achieved under the Electronic Toll Collection system and improve efficiency at fee plazas nationwide.
Officials said the transition will enhance ease of commuting by increasing lane throughput and reducing congestion. Moreover, digital-only transactions will bring greater transparency and consistency in toll collection operations.
Over the past few years, FASTag adoption has crossed 98 percent, transforming toll practices across the country. Most vehicles now use RFID-enabled FASTag for seamless and contactless payments. In addition, UPI facilities operate at toll plazas to provide instant digital payment options.
Cash payments at National Highway fee plazas may soon end
According to current fee rules, vehicles without a valid FASTag must pay twice the applicable user fee if they opt for cash. Meanwhile, users paying through UPI are charged 1.25 times the standard fee for their vehicle category. These measures have already reduced dependence on cash transactions.
Plaza-level assessments show that cash payments contribute to congestion and longer waiting times, especially during peak hours. They also lead to transaction disputes and operational delays. Therefore, a complete shift to digital payments is expected to streamline traffic management at over 1,150 toll plazas on highways and expressways.
The initiative aligns with NHAI’s broader objective of creating a technology-driven highway network. By eliminating cash handling, the authority seeks to deliver faster and more reliable services to commuters across India.
