The government announced that the NHAI is considering eliminating cash transactions at National Highway fee plazas nationwide starting April 1, 2026. This shift aims to establish a fully digital tolling system on National Highways. Toll payments at these plazas will be conducted solely through digital methods like FASTag or UPI post implementation.
This initiative, as per the Ministry of Road Transport and Highways, seeks to build on the success of Electronic Toll Collection and enhance the efficiency of National Highway fee plaza operations. The move is expected to streamline commuting for highway users by boosting lane throughput, reducing congestion at plazas, and ensuring consistency and transparency in toll transactions.
With over 98% FASTag penetration, toll collection practices in India have seen a significant shift towards electronic processing. The majority of toll transactions are now handled electronically through RFID-enabled FASTags, enabling smooth and contactless passage at toll plazas. UPI payment services have also been introduced at these plazas to offer quick and convenient digital payment options for highway travelers nationwide.
Vehicles without a functional FASTag entering a fee plaza are currently charged double the user fee if paying in cash. In contrast, those opting for UPI payments are charged only 1.25 times the user fee for their vehicle category. The government anticipates that transitioning to a digital-only payment mode will enhance operational efficiency, traffic management, reduce delays, and elevate the overall user experience at more than 1,150 fee plazas on National Highways and Expressways.
Additionally, the FASTag Annual Pass has garnered over 50 lakh users, with a remarkable 26.55 crore transactions recorded within six months of its launch. This pass offers a hassle-free alternative by requiring a one-time payment of Rs 3,000 for a year’s validity or 200 toll plaza crossings, eliminating the need for frequent recharges.
