New Delhi: The National Highways Authority of India (NHAI) is moving toward a fully cashless toll collection system at all national highway toll plazas across the country. Under a proposal currently being considered by the authority, cash payments would be completely discontinued from April 1, 2026, and commuters would be required to pay toll charges only through digital methods such as FASTag or Unified Payments Interface (UPI), reported the Times of India.
According to the proposal, toll payments at more than 1,150 fee plazas would be processed solely via electronic modes to enhance operational efficiency, reduce congestion and waiting times, and improve transparency in collections. Officials said that the shift to digital payments is expected to streamline toll operations and strengthen the reliability of toll plaza systems nationwide.
FASTag, an RFID-based electronic toll collection system, is already widely adopted — with more than 98 % of highway users currently using it for toll payments. In addition to FASTag, UPI payment options are available at toll plazas to offer commuters alternative digital payment avenues.
Under existing National Highway fee rules, vehicles without a valid FASTag that pay in cash face a penalty, often paying twice the normal toll amount. Motorists choosing to pay through UPI are currently charged 1.25 times the applicable fee for their vehicle category. With the proposed change, these disparities would become less relevant as cash is phased out entirely.
Officials have highlighted that manual cash transactions contribute to congestion, longer queues and disputes at toll points, especially during peak traffic hours. By moving to digital payments only, the government aims to improve lane throughput, reduce delays and offer a smoother experience for road users.
