NEW DELHI: Starting April, cash transactions may not be accepted at national highway toll plazas under the jurisdiction of the National Highways Authority of India (NHAI). The ministry of road transport and highways (MoRTH) on Friday said there is a proposal to create a fully digital National Highway tolling ecosystem. Users may only be allowed to pay fees through digital or Unified Payments Interface (UPI) mode.
The transition will help to enhance ease of commuting for highway users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency in toll transactions, said ministry officials.
“In order to develop a fully digital National Highway tolling ecosystem, NHAI is contemplating to completely discontinue cash transactions at the National Highway fee plazas across the country from 1st April 2026. Post implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI). The proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of National Highway fee plaza operations,” a statement issued by the ministry read.
In the past few years, over 98 percent penetration of FASTag -- radio frequency identification tag for toll payments from the linked prepaid or savings account -- has significantly transformed toll collection practices in the country. At present, an overwhelming proportion of toll transactions are processed electronically through RFID-enabled FASTag affixed to vehicles, facilitating seamless and contactless movement across toll plazas.
In addition, UPI payment facilities have been operationalized at the toll plazas, ensuring availability of instant and accessible digital payment options for commuters nationwide.
The ministry said the proposal to stop cash transactions is to prevent congestion and reduce waiting time. “Plaza-level assessments indicate that cash-based payments contribute to congestion, increased waiting times during peak traffic periods and transaction-related disputes. A complete transition to digital only mode of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall highway user experience at over 1,150 fee plazas on various highways and expressways,” said an official.
As per National Highway fee rules, vehicles entering a toll plaza without a valid, functional FASTag are charged twice the applicable user fee, if the fee payment is made in cash. Whereas National Highway users who opt to pay via UPI are charged only 1.25 times of the user fee for the applicable vehicle category. These initiatives have collectively advanced the objective of reducing dependency on cash transactions and digitizing the tolling framework.