Cash payments at National Highway fee plazas to be discontinued from April 1

In a significant move towards a fully digital tolling ecosystem, the National Highways Authority of India (NHAI) has announced plans to discontinue cash payments at National Highway fee plazas starting 1st April 2026. From this date, all toll transactions will be processed exclusively through digital payment modes, including FASTag and Unified Payments Interface (UPI).

This transition is aimed at improving the efficiency and reliability of toll collection systems across the country while enhancing the overall commuting experience for National Highway users. The new policy is expected to streamline toll operations, reduce congestion at fee plazas, and bring greater transparency and consistency to toll transactions.

A Shift Towards Fully Digital Transactions

Over the past few years, the FASTag system has seen remarkable growth, with over 98 percent penetration among vehicles. The RFID-enabled FASTag, affixed to vehicles, has facilitated seamless and contactless toll payments, significantly reducing manual interventions and wait times at toll plazas. Additionally, UPI payment options have been made available at toll booths, offering a flexible and instantaneous digital payment method for commuters.

Under the current tolling structure, vehicles that enter a fee plaza without a valid FASTag are charged twice the applicable user fee if they opt for cash payments. On the other hand, those who choose to pay via UPI are charged 1.25 times the user fee for the respective vehicle category, promoting the shift to digital transactions.

Reducing Congestion and Enhancing Efficiency

Assessments at various toll plazas have revealed that cash-based payments contribute significantly to congestion, particularly during peak traffic hours. In addition to causing longer wait times, cash transactions often lead to disputes and delays, further affecting the efficiency of fee plaza operations.

By transitioning to a digital-only payment system, NHAI aims to reduce these bottlenecks and ensure smoother traffic flow. This change is expected to enhance the lane throughput, cut down waiting times, and provide a more consistent experience for commuters at over 1,150 toll plazas located on National Highways and Expressways across the country.

A Step Towards a Modernized National Highway Network

The discontinuation of cash payments aligns with NHAI's broader vision of creating a technology-driven, high-efficiency National Highway network. By embracing digital payment methods, the government aims to provide faster, more seamless services to highway users while minimizing operational costs and administrative burdens.

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This step is expected to further bolster the Ease of Commuting for drivers and passengers, contributing to a more modern, transparent, and user-friendly tolling experience.

As the country continues its digital transformation, the discontinuation of cash payments is seen as a crucial milestone in advancing the Electronic Toll Collection (ETC) system, making toll payments quicker, easier, and more efficient for everyone traveling on India’s National Highways.