The National Highways Authority of India (NHAI) plans to eliminate cash transactions at toll plazas nationwide, effective April 1, 2026. This initiative is aimed at establishing a fully digital toll collection framework, focusing exclusively on electronic payment methods such as FASTag and the Unified Payments Interface (UPI). An official statement from NHAI highlighted that the transition seeks to boost ‘Ease of Commuting’ by enhancing lane capacity, reducing congestion at toll booths, and promoting greater transparency in toll fee transactions.

Significant Growth in FASTag Usage

NHAI noted that the adoption of FASTag has surpassed 98 percent in recent years, marking a significant shift in toll collection practices across the country. Presently, most toll payments are processed electronically through RFID-enabled FASTags attached to vehicles, facilitating seamless and contactless passage at toll plazas. Furthermore, UPI payment facilities have been implemented at these plazas, offering immediate and convenient digital payment alternatives.

Current Fee Structure for Cash and Digital Payments

Under existing regulations for National Highway fees, vehicles that enter a fee plaza without a functional FASTag face double the applicable user fee if they opt for cash payment. In contrast, those who choose the UPI option incur a fee that is 1.25 times the standard charge for their respective vehicle category. This pricing structure is intended to encourage the use of electronic payment methods while streamlining toll collection processes.

Challenges Associated with Cash Payments

Assessments at various toll plazas show that cash transactions contribute to increased congestion and longer wait times, especially during peak hours. Additionally, they give rise to disputes related to transactions. The strategic move towards a fully digital payment system is expected to enhance operational efficiency, optimize traffic management, and significantly reduce delays across more than 1,150 toll plazas situated on National Highways and Expressways throughout India.

NHAI’s Vision for a Tech-Driven Highway Network

This initiative reflects NHAI’s broader commitment to developing a technology-centric and efficient National Highway network. The authority aims to deliver faster and more seamless services to highway users across the nation, thereby enhancing the overall travel experience. By phasing out cash payments, NHAI is taking a significant step towards modernization and improving the toll collection system in the country.

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