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NHAI Eyes End of Cash at Toll Plazas by April 1
21 Feb
Summary
- National Highways Authority plans to stop cash payments at toll plazas from April 1, 2026.
- All National Highway tolls will transition to digital payments via FASTag or UPI.
- Over 98% of current toll transactions utilize the RFID-enabled FASTag technology.
The National Highways Authority of India (NHAI) is preparing to transition to a fully digital tolling ecosystem, with plans to cease accepting cash payments at national highway toll plazas effective April 1, 2026. This upcoming policy change will require all commuters to utilize digital payment methods, specifically FASTag or the Unified Payments Interface (UPI), for their toll transactions.
The NHAI states that this initiative aims to consolidate the progress made in electronic toll collection and to bolster the efficiency and reliability of toll plaza operations across the country.
This transition is expected to significantly improve the commuting experience by reducing congestion at fee plazas and increasing the speed of traffic flow. It will also introduce greater consistency and transparency in tolling procedures.
The widespread adoption of FASTag, which has achieved over 98% penetration, has already revolutionized toll collection. UPI payment facilities are also now operational at toll plazas, offering instant and accessible digital payment options nationwide.
Currently, vehicles without a functional FASTag are charged double the user fee if paying in cash, while UPI users are charged 1.25 times the fee. Eliminating cash transactions is expected to further improve operational efficiency, traffic management, and the overall user experience at the nation's over 1,150 fee plazas.
