Traveling on national highways in India could soon become completely cash-free. The National Highways Authority of India (NHAI) is preparing to eliminate cash payments at toll plazas, allowing toll fees to be paid only through digital modes such as FASTag and UPI.
According to reports, NHAI is working towards implementing a fully digital toll collection system from April 1, 2026. Once the proposal is enforced, cash transactions at national highway toll plazas across the country may be discontinued altogether.
What is NHAI saying?
NHAI has clarified that the move is aimed at strengthening the Electronic Toll Collection (ETC) system and maximizing its benefits. A fully digital payment setup is expected to speed up vehicle movement, reduce congestion at toll plazas, and increase lane efficiency. It will also improve transparency in toll transactions and minimize disputes, offering a smoother experience for commuters.
FASTag adoption already at 98%
FASTag usage has seen massive growth in recent years, with over 98% of vehicles now using the RFID-based toll payment system. FASTag allows vehicles to pass through toll plazas without stopping, saving fuel and time. Alongside this, UPI payments have also been enabled at toll plazas nationwide, giving users more digital payment choices.
What are the current rules?
Under existing regulations, vehicles entering toll plazas without a valid FASTag and opting for cash payment are charged double the toll fee. Meanwhile, toll payments made via UPI attract around 1.25 times the standard fee. These rules have already pushed most commuters toward digital payments and reduced cash dependency.
Why is this change needed?
NHAI’s assessment shows that cash-payment lanes witness the highest congestion, especially during peak traffic hours. Cash handling not only slows down traffic flow but also increases the chances of disputes at toll booths. Moving to a completely digital system will help streamline toll operations, cut waiting times, and improve overall traffic management.
If implemented, this decision will impact over 1,150 toll plazas across national highways and expressways. India’s tolling network would then become entirely cashless, offering travelers a faster, more transparent, and hassle-free journey.
