The National Highways Authority of India (NHAI) is planning to eliminate cash transactions at toll plazas across the nation beginning April 1, 2026. This initiative is part of a broader strategy aimed at developing a fully digital tolling infrastructure. Should this plan be executed, all toll payments at National Highway fee plazas will exclusively utilize digital methods such as FASTag or Unified Payments Interface (UPI). The initiative is anticipated to enhance the efficiency of fee plaza operations and improve the overall toll collection experience.

Benefits of Going Cashless

NHAI has stated that the transition to a cashless system will simplify the process for highway users. It aims to increase lane throughput, minimize congestion at fee plazas, and introduce greater transparency and reliability in toll transactions. Recent years have seen a remarkable increase in FASTag usage, which has surpassed 98 percent. This development has significantly transformed how toll collections are conducted throughout the country. Currently, most toll activities are executed electronically via RFID-enabled FASTags, allowing users to pass through toll plazas without the need for cash payments.

Implementation of UPI Payment Options

In addition to FASTag, authorities have launched UPI payment systems at National Highway toll plazas to facilitate instant and convenient digital payments for commuters across the country. As per the existing National Highway fee regulations, vehicles without a valid and functional FASTag are required to pay double the designated user fee if cash is used. Conversely, drivers opting for UPI payments will pay 1.25 times the applicable user fee for their vehicle type. This pricing structure aims to encourage the adoption of digital payments while addressing congestion issues.

Addressing Traffic Congestion

Assessments conducted at various toll plazas indicate that cash payments contribute significantly to traffic congestion, leading to longer waiting times during peak hours and disputes related to transactions. The NHAI posits that transitioning to a digital-only payment system will enhance operational efficiency, optimize traffic management, and reduce delays, ultimately improving the overall experience for highway users. This initiative encompasses more than 1,150 fee plazas on National Highways and Expressways throughout India.

Goals of the NHAI Initiative

The proposed cashless payment initiative aligns with the NHAI’s overarching goal of establishing a technology-driven and high-efficiency National Highway network. This framework aims to provide quicker and more seamless services to users across the country. The complete shift to digital transactions is part of NHAI’s effort to modernize toll collection practices, contributing to a more streamlined travel experience for all commuters on national highways.

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