NHAI is considering discontinuing cash payments at National Highway toll plazas from April 1, 2026, moving to a fully digital system.
The National Highways Authority of India (NHAI) is contemplating discontinuing cash transactions at National Highway fee plazas across the country from April 1, 2026, as part of its plan to create a fully digital tolling ecosystem.
If implemented, all toll payments at National Highway fee plazas will be processed exclusively through digital modes such as FASTag or Unified Payments Interface (UPI). The move aims to consolidate the gains achieved in Electronic Toll Collection and strengthen the efficiency and reliability of fee plaza operations.
NHAI said the transition will enhance ease of commuting for highway users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency to toll transactions.
Over the past few years, FASTag penetration has crossed 98 percent, significantly transforming toll collection practices in the country. At present, most toll transactions take place electronically through RFID-enabled FASTags affixed to vehicles, allowing seamless and contactless movement across toll plazas.
Authorities have also operationalised UPI payment facilities at National Highway toll plazas to ensure instant and accessible digital payment options for commuters nationwide.
Under National Highway fee rules, vehicles entering a fee plaza without a valid and functional FASTag must pay twice the applicable user fee if the payment is made in cash. However, users who choose to pay via UPI are charged 1.25 times the applicable user fee for their vehicle category.
According to plaza-level assessments, cash-based payments contribute to congestion, longer waiting times during peak traffic periods and transaction-related disputes. NHAI believes that a complete shift to digital-only payments will strengthen operational efficiency, improve traffic management, minimise delays and enhance the overall user experience at over 1,150 fee plazas on National Highways and Expressways across the country.
