National Highways Authority of India NHAI Plans To End Cash Toll Payments From April 1

National Highways Authority of India NHAI Plans To End Cash Toll Payments From April 1

The National Highways Authority of India (NHAI) is considering discontinuing cash payments at National Highway toll plazas across the country from April 1, 2026. Once implemented, all toll payments will be processed exclusively through digital modes such as FASTag or Unified Payments Interface (UPI).

According to NHAI, the move is aimed at developing a fully digital tolling ecosystem and consolidating the gains achieved through Electronic Toll Collection (ETC). The authority said the transition would strengthen operational efficiency, enhance reliability, and improve overall traffic management at more than 1,150 fee plazas on National Highways and Expressways.

Focus On Faster, Seamless Travel

Over the past few years, FASTag — an RFID-enabled electronic toll collection system — has achieved over 98 per cent penetration nationwide, significantly transforming toll collection practices. Most transactions at toll plazas are already processed electronically, enabling seamless and contactless movement of vehicles.

Additionally, UPI payment facilities have been operational at toll plazas, offering commuters instant and accessible digital payment options.

Under existing National Highway fee rules, vehicles entering a toll plaza without a valid and functional FASTag are charged double the applicable user fee if payment is made in cash. Those opting to pay through UPI are charged 1.25 times the applicable fee.

NHAI said assessments indicate that cash-based payments contribute to congestion, longer waiting times during peak hours, and transaction-related disputes. A complete shift to digital payments is expected to enhance lane throughput, reduce bottlenecks, and bring greater transparency and consistency in toll transactions.

The proposed transition is part of the government’s broader push towards digital infrastructure and ease of commuting for highway users nationwide.