NHAI to discontinue cash toll payments from April

Come April 1 and no cash payments will be allowed at the national toll plazas across the country with the National Highways Authority of India (NHAI) contemplating to move away from cash to fully digital mode of toll payments to enhance transparency while strengthening the efficiency and reliability in the system.

“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,” the ministry of road transport and highways said in a statement on Friday.

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, the ministry said.

“The transition will help to enhance ease of commuting for National Highway users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency in toll transactions,” it added.

In the past few years, over 98% penetration of FASTag 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 National Highway toll plazas, ensuring availability of instant and accessible digital payment options for National Highway commuters nationwide.

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.

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 National Highway user experience at over 1,150 fee plazas on various National Highways and Expressways in the country, the ministry concluded.