The National Highways Authority of India (NHAI) is contemplating a major policy shift to develop a fully digital National Highway tolling ecosystem. From April 1, 2026, cash transactions at National Highway fee plazas across the country may be completely discontinued. Once implemented, toll payments will be processed exclusively through FASTag and Unified Payments Interface (UPI) at more than 1,150 toll plazas on National Highways and Expressways.
This move aims to consolidate the progress achieved in Electronic Toll Collection (ETC) and strengthen operational efficiency, transparency, and reliability in toll plaza operations.
Why NHAI is Moving Towards Digital-Only Tolling
Over the past few years, the introduction of RFID-enabled FASTag has significantly transformed toll collection in India. Currently, more than 98 percent of toll transactions are processed electronically, enabling seamless, contactless movement of vehicles across plazas.
Additionally, UPI payment facilities have been introduced at toll plazas, offering commuters a fast and accessible digital payment option. The proposed shift to fully digital toll payments aligns with the government’s broader Digital India initiative and aims to enhance the overall highway travel experience.
Key Objectives of the Policy
- Improve Ease of Commuting for highway users
- Increase lane throughput and reduce congestion
- Minimise waiting time at toll plazas
- Eliminate transaction-related disputes
- Enhance transparency and accountability in toll operations
Current Toll Payment Rules & Charges
As per existing National Highway fee rules:
- Vehicles entering without a valid and functional FASTag and paying in cash are charged twice the applicable toll fee.
- Users opting to pay via UPI are charged 1.25 times the applicable toll fee.
These measures were introduced to discourage cash transactions and promote digital adoption. With near-universal FASTag penetration, NHAI is now planning to eliminate cash completely.
Impact on Highway Users
The complete transition to digital-only tolling is expected to bring several benefits:
- Faster vehicle movement at toll plazas
- Reduced congestion during peak hours
- Lower operational delays
- Improved traffic management systems
- Greater consistency in toll fee collection
Plaza-level assessments indicate that cash payments significantly contribute to bottlenecks and longer queues, especially during high-traffic periods. Eliminating cash transactions will enhance efficiency across the entire National Highway network.
Scope of Implementation
The policy, once enforced, will apply to:
- Over 1,150 fee plazas
- All major National Highways and Expressways
- All vehicle categories using toll roads
This initiative reinforces NHAI’s objective of creating a technology-driven, high-efficiency highway infrastructure that supports seamless and faster travel nationwide.
Quick Reference Summary
| Policy Detail | Information |
| Authority | National Highways Authority of India (NHAI) |
| Effective Date (Proposed) | April 1, 2026 |
| Payment Modes Allowed | FASTag and UPI only |
| Cash Payments | To be discontinued |
| FASTag Penetration | Over 98% |
| Number of Toll Plazas | 1,150+ across India |
| Objective | Improve efficiency, reduce congestion, enhance transparency |
Benefits of Digital Tolling Ecosystem
The shift to exclusive digital toll collection will:
- Reduce human intervention
- Improve revenue accountability
- Support real-time data tracking
- Enhance user convenience
- Strengthen India’s smart transport infrastructure
The transition also aligns with national efforts toward cashless payments and digital governance.
Frequently Asked Questions (FAQs)
| When will cash toll payments be discontinued? |
| NHAI is proposing to discontinue cash payments from April 1, 2026. |
| Which payment methods will be allowed at toll plazas? |
| Only FASTag and UPI will be accepted. |
| How many toll plazas will be affected? |
| More than 1,150 toll plazas across National Highways and Expressways. |
| What is the current FASTag penetration rate? |
| Over 98 percent of toll transactions are already digital. |
| What happens if a vehicle does not have FASTag? |
| Currently, such vehicles paying in cash are charged double the toll fee. |
| Will UPI payments continue after April 2026? |
| Yes, UPI will remain an approved digital payment option. |
| Why is NHAI implementing this change? |
| To improve efficiency, reduce congestion, and ensure transparency in toll transactions. |
| Where can users check official updates? |
| Users should refer to the official NHAI website for updates. |
The proposed discontinuation of cash toll payments from April 1, 2026, marks a significant milestone in India’s journey toward a fully digital toll collection system. With FASTag already achieving near-universal adoption and UPI offering instant payment options, the transition is expected to enhance highway efficiency and commuter convenience. For official notifications and implementation updates, commuters are advised to visit the NHAI official website and bookmark this page for future reference
