In a significant push towards a cashless economy, the National Highways Authority of India (NHAI) has announced plans to eliminate cash transactions at all National Highway toll plazas starting April 1, 2026.
This move aims to create a fully digital tolling ecosystem, with payments restricted to FASTag or Unified Payments Interface (UPI) methods only.
The initiative, detailed in a press release from the Press Information Bureau (PIB), is designed to build on the success of electronic toll collection, which has already achieved over 98% penetration through FASTag. By transitioning entirely to digital payments, NHAI expects to reduce congestion, minimise waiting times, and eliminate transaction disputes at over 1,150 toll plazas across India’s highways and expressways.
“Over the past few years, FASTag has revolutionised toll collection by enabling seamless, contactless payments via RFID technology affixed to vehicles,” the release stated. Additionally, UPI integration at toll plazas provides an instant digital alternative, further reducing reliance on cash.
Under current rules, vehicles without a valid FASTag face double the toll fee if paying in cash, while UPI users pay only 1.25 times the standard rate. Plaza-level data highlights how cash payments exacerbate traffic bottlenecks, especially during peak hours. The full digital shift is projected to enhance lane throughput, improve traffic management, and bring greater transparency to toll operations.
This development aligns with NHAI’s broader vision of a technology-driven highway network that prioritises efficiency and user convenience. Commuters are encouraged to adopt FASTag or UPI to ensure smoother journeys, as the change will promote ‘Ease of Commuting’ for millions of highway users nationwide.
The announcement comes amid India’s ongoing digital transformation, where electronic payments have surged in popularity. Experts believe this could set a precedent for other sectors, further accelerating the country’s move towards a paperless, cashless infrastructure.
