The National Highways Authority of India (NHAI) is considering a major shift in highway toll collection by discontinuing cash payments at toll plazas across the country from April 1, 2026. Under the proposed system, commuters travelling on National Highways will be required to pay toll charges only through digital modes such as FASTag or Unified Payments Interface (UPI).
According to the authority, the move is aimed at creating a fully digital National Highway tolling ecosystem, building on the success of electronic toll collection systems introduced over the past few years. Once implemented, all toll payments at National Highway fee plazas will be processed exclusively through digital platforms, eliminating cash transactions entirely.
The proposal seeks to consolidate gains achieved through FASTag adoption, which has already transformed toll collection practices in India. With over 98 percent FASTag penetration, the majority of toll transactions are currently completed electronically using RFID-enabled tags attached to vehicles, enabling seamless and contactless passage through toll plazas.
NHAI said the transition is expected to significantly improve the ease of commuting by increasing lane throughput, reducing congestion, and ensuring greater transparency and consistency in toll transactions. Plaza-level assessments have shown that cash payments often lead to longer queues, delays during peak hours, and disputes over payments, all of which impact traffic flow.
In addition to FASTag, UPI payment facilities have already been introduced at toll plazas nationwide, offering commuters an instant and widely accessible digital payment alternative. Under existing National Highway fee rules, vehicles entering toll plazas without a valid FASTag are charged double the applicable toll fee if payment is made in cash. Meanwhile, users opting for UPI payments are currently charged 1.25 times the user fee for their vehicle category.
Officials believe that a complete transition to digital payments will strengthen operational efficiency, improve traffic management, and minimise delays across more than 1,150 toll plazas operating on National Highways and Expressways throughout the country.
If approved and implemented, the initiative will mark another major step in India’s push toward digital infrastructure, making highway travel faster, more efficient, and largely cash-free for millions of daily commuters.
