The Ministry of Road Transport and Highways is planning to completely discontinue cash payments at all National Highway fee plazas from 1st April, 2026. After this, all toll payments will be made only through digital modes such as FASTag and UPI.
Cash Payments at National Highway Fee Plazas Likely to be Discontinued from 1st April 2026
— PIB India (@PIB_India) February 20, 2026
All toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI)
The initiative is aligned with the…
According to a press release issued by the Press Information Bureau, the proposal is aimed at making toll operations smoother and more reliable. The plan is to leverage the progress made in Electronic Toll Collection and establish a completely digital tolling system in the country.
At present, more than 98 % of vehicles are using FASTag, which has already brought a significant change in tolling payments in the country. Most vehicles pass through toll plazas using RFID-enabled FASTags pasted on their windshields, which enable automatic and contactless payments without stopping for a long time.
The National Highways Authority of India (NHAI) has also enabled UPI payments at toll plazas. This gives commuters an instant digital option if needed. Officials believe that moving completely to digital payments will reduce traffic jams, cut waiting time during rush hours and bring more transparency in toll transactions. Plaza-level reviews have shown that cash payments often lead to longer queues and disputes.
As per the existing rules, vehicles without a valid and working FASTag are charged double the toll fee if they pay in cash. Those who choose to pay via UPI are charged 1.25 times the applicable user fee for their vehicle category. These steps were introduced to slowly reduce cash use and encourage digital payments.
The expected shift to digital-only payments will cover over 1,150 fee plazas on National Highways and Expressways across India.
What is FASTag?
FASTag is a small sticker that is placed on the windscreen of a vehicle and uses Radio Frequency Identification (RFID) technology. It allows toll money to be deducted directly from the linked bank account or wallet while the vehicle is moving. FASTag is currently active at more than 750 toll plazas, including all National Highway toll plazas and over 100 State Highway toll plazas in India.
