New Delhi, Feb 20 The government on Friday said that the NHAI is contemplating to completely discontinue cash transactions at the National Highway fee plazas across the country from April 1, 2026.
The move will develop a fully digital National Highway tolling ecosystem.
Post implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI).
According to the Ministry of Road Transport and Highways, the proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of National Highway fee plaza operations.
“The transition will help to enhance ‘Ease of Commuting’ for National Highway users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency in toll transactions,” according to the official statement.
Over 98 per cent penetration of FASTag has significantly transformed toll collection practices in the country.
Moreover, an overwhelming proportion of toll transactions are processed electronically through RFID-enabled FASTag affixed to vehicles, facilitating seamless and contactless movement across toll plazas.
According to the NHAI, UPI payment facilities have been operationalised at the National Highway toll plazas, ensuring availability of instant and accessible digital payment options for National Highway commuters nationwide.
Vehicles entering a fee plaza without a valid, functional FASTag are currently charged twice the applicable user fee, if the fee payment is made in cash.
Whereas National Highway users who opt to pay via UPI are charged only 1.25 times of the user fee for the applicable vehicle category.
“A complete transition to digital only mode of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall National Highway user experience at over 1,150 fee plazas on various National Highways and Expressways in the country,” said the government.
Meanwhile, FASTag Annual Pass has crossed 50 lakh users, with over 26.55 crore transactions recorded within six months of its launch. The Annual Pass eliminates the need to frequently recharge FASTag through a one-time fee payment of Rs 3,000 for one year's validity or 200 toll plaza crossings.
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