Daijiworld Media Network – New Delhi
New Delhi, Feb 20: Cash transactions may no longer be accepted at national highway toll plazas under the jurisdiction of the National Highways Authority of India (NHAI) starting April 1, 2026, as the Centre moves toward creating a fully digital tolling ecosystem.
The Ministry of Road Transport and Highways (MoRTH) on Friday said NHAI is contemplating discontinuing cash payments across all National Highway fee plazas nationwide. Under the proposal, toll payments will be processed exclusively through digital modes such as FASTag and Unified Payments Interface (UPI).
According to the ministry, the transition aims to enhance commuter convenience by improving lane throughput, reducing congestion at toll plazas and ensuring greater consistency and transparency in toll transactions.
“In order to develop a fully digital National Highway tolling ecosystem, NHAI is contemplating to completely discontinue cash transactions at National Highway fee plazas across the country from 1st April 2026. Post implementation, all toll payments will be processed exclusively through digital modes using FASTag or UPI,” the ministry said in a statement.
Over the past few years, FASTag — a radio frequency identification (RFID)-based system linked to prepaid or savings accounts — has achieved more than 98 per cent penetration, significantly transforming toll collection practices. The majority of toll transactions are now processed electronically through RFID-enabled FASTag affixed to vehicles, enabling seamless and contactless passage.
In addition, UPI facilities have been operational at toll plazas, offering instant and accessible digital payment options for commuters across the country.
Officials said plaza-level assessments indicate that cash-based payments contribute to congestion, longer waiting times during peak hours and transaction-related disputes.
A complete shift to digital-only payments is expected to improve operational efficiency, traffic management and overall user experience at more than 1,150 fee plazas on highways and expressways.
Under National Highway fee rules, vehicles entering toll plazas without a valid FASTag are charged twice the applicable user fee if paying in cash. Those opting to pay via UPI are charged 1.25 times the applicable fee for their vehicle category.
The proposed move is seen as a continuation of efforts to reduce reliance on cash transactions and further digitise India’s highway tolling framework.