In a major step towards creating a fully digital tolling ecosystem, the National Highways Authority of India (NHAI) is considering discontinuing cash transactions at all National Highway fee plazas from April 1, 2026, the Ministry of Road Transport and Highways (MoRTH) said in a statement on Friday.If implemented, all toll payments will be processed exclusively through digital modes such as FASTag and the Unified Payments Interface (UPI). The move aims to consolidate the progress made under the Electronic Toll Collection system and further enhance the efficiency and reliability of toll plaza operations.The proposed transition is expected to improve ease of commuting by increasing lane throughput, reducing congestion and ensuring greater transparency and consistency in toll transactions.Over the years, FASTag adoption has crossed 98 per cent, significantly transforming toll collection nationwide. At present, most transactions are conducted electronically through RFID-enabled FASTags affixed to vehicles, enabling seamless and contactless movement across toll plazas. In addition, UPI facilities have been introduced at toll plazas to provide commuters with instant digital payment options.Under existing National Highway fee rules, vehicles without a valid and functional FASTag are charged double the applicable toll if they opt to pay in cash. Meanwhile, users choosing UPI are charged 1.25 times the applicable fee for their vehicle category. These measures have already reduced reliance on cash and accelerated digitisation of toll collection.According to MoRTH, assessments at various plazas show that cash payments often lead to congestion, longer waiting times during peak hours and transaction-related disputes. A complete shift to digital payments is expected to improve operational efficiency, streamline traffic management, minimise delays and enhance user experience at more than 1,150 fee plazas on National Highways and Expressways across the country.
