The National Highways Authority of India (NHAI) is considering ending cash payments at toll plazas across the country from April 1, 2026, in a major push towards a fully digital toll collection system.
If implemented, all toll payments at National Highway fee plazas will be processed exclusively through digital modes such as FASTag and Unified Payments Interface (UPI). The move aims to strengthen the efficiency, reliability and transparency of toll operations nationwide.
According to NHAI, the proposal is designed to consolidate gains made under the Electronic Toll Collection programme and create a seamless digital ecosystem. Over the past few years, FASTag penetration has crossed 98%, transforming toll payments through RFID-enabled stickers affixed to vehicles. These enable contactless and faster movement across toll plazas.
UPI facilities have also been operationalised at toll plazas, offering commuters instant and accessible payment options. Currently, vehicles entering a toll plaza without a valid FASTag and opting to pay in cash are charged double the applicable user fee. In contrast, those paying via UPI are charged 1.25 times the standard toll.
Officials say cash transactions often lead to congestion, longer waiting times during peak hours and disputes at plazas. A complete transition to digital payments is expected to improve lane throughput, reduce delays and enhance the overall commuting experience.
The proposed change would impact over 1,150 toll plazas on National Highways and expressways across India. NHAI believes the shift will further streamline traffic management while promoting transparency and consistency in toll transactions.
The plan is currently under consideration, and further details are expected in the coming weeks.
