Highway travel in India could soon become completely cashless. The National Highways Authority of India (NHAI) is considering a proposal to stop cash payments at toll plazas across the country from April 1, 2026. If implemented, commuters will have to use digital payment methods such as FASTag or UPI to pay toll charges.According to the authority, the move is part of a plan to create a fully digital toll collection system on National Highways. After the proposed date, toll payments at fee plazas would be processed only through electronic modes.
Majority of highway users already use FASTag
FASTag adoption has grown rapidly in recent years, with more than 98 percent of vehicles already using the electronic toll system. Most toll payments are currently completed through RFID-enabled FASTag stickers, allowing vehicles to pass through toll plazas without stopping. UPI payment facilities are also available at toll plazas.Under existing rules, vehicles without a valid FASTag have to pay double the toll amount if the payment is made in cash. Motorists choosing to pay through UPI are charged 1.25 times the applicable toll fee.
Officials believe cash transactions often lead to congestion, longer waiting times and disputes at toll plazas. A shift to fully digital payments is expected to improve traffic flow and reduce delays at more than 1,150 toll plazas on National Highways and expressways.Stay tuned to TOI Auto for latest updates on the automotive sector and do follow us on our social media handles on Facebook, Instagram and X.
