India May Go Cashless at Highway Toll Plazas from April 1

The National Highways Authority of India (NHAI) is considering a nationwide shift to fully digital toll payments, with cash transactions at National Highway toll plazas likely to be discontinued from April 1, 2026. The proposed move is part of a broader effort to modernise toll collection and improve traffic flow across India’s expanding highway network.

If implemented, toll payments will be processed exclusively through digital methods such as FASTag and Unified Payments Interface (UPI). Authorities believe the transition will enhance efficiency, reduce congestion, and bring greater transparency and consistency to toll operations.

Push toward a fully digital tolling system

NHAI officials said the initiative aims to consolidate the success of electronic toll collection systems already in place across the country. FASTag adoption has exceeded 98 percent, transforming toll payments by enabling seamless, contactless transactions through RFID-enabled tags affixed to vehicles.

UPI payment facilities have also been introduced at toll plazas to provide an accessible alternative for commuters who may not use FASTag. Together, these digital options are expected to create a streamlined tolling ecosystem.

Benefits for commuters and traffic management

According to officials, eliminating cash payments could significantly improve commuting experiences. Cash transactions often lead to longer waiting times, traffic bottlenecks, and disputes at toll booths. A digital-only system would allow faster lane throughput, reduce congestion during peak hours, and ensure smoother vehicle movement.

The move is also expected to enhance transparency in toll collection and minimise operational inefficiencies associated with manual handling of cash.

Current rules and payment charges

Under existing rules, vehicles entering a toll plaza without a valid FASTag must pay double the applicable toll fee if they choose to pay in cash. Users who pay via UPI are charged 1.25 times the applicable fee based on their vehicle category.

With the proposed digital-only system, FASTag and UPI payments will become the standard methods for toll transactions across more than 1,150 fee plazas on national highways and expressways.

Strengthening India’s digital infrastructure

Authorities say the proposal aligns with the government’s broader goal of building a technology-driven transport network that delivers faster and more reliable services to road users.

By reducing delays, improving traffic flow, and strengthening digital payment adoption, the initiative aims to enhance operational efficiency while supporting India’s push toward a cashless economy.

If approved, the shift to digital-only toll payments could mark a significant milestone in modernising highway infrastructure and improving travel experiences for millions of commuters nationwide.