NH toll payments likely to go fully digital from April 1

New Delhi: In a major push towards digitisation and smoother traffic flow, the National Highways Authority of India (NHAI) is considering ending cash payments at highway toll plazas from April 1, 2026. If the proposal is implemented, commuters will have to use digital payment methods such as FASTag or the Unified Payments Interface (UPI) to pay toll charges.

“Post implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes, using FASTag or Unified Payments Interface (UPI),” the NHAI said.

The authority said it is examining the option of completely phasing out cash transactions at National Highway fee plazas nationwide from April 1, 2026, with the aim of creating a fully digital tolling ecosystem.

According to NHAI, the proposed step seeks to consolidate the progress made under Electronic Toll Collection and improve the efficiency and reliability of operations at fee plazas.

The shift is expected to boost ‘Ease of Commuting’ for highway users by increasing vehicle throughput, cutting down congestion at toll plazas and ensuring more uniform and transparent toll transactions, reported PTI.

In recent years, FASTag usage has crossed 98 per cent penetration, fundamentally transforming toll collection across the country. Currently, the majority of toll payments are processed electronically through RFID-enabled FASTags installed on vehicles, enabling smooth and contactless passage through toll plazas.

UPI payment options have also been introduced at National Highway toll plazas, ensuring commuters have access to instant and convenient digital payment facilities nationwide.

Under the prevailing National Highway fee rules, vehicles entering a toll plaza without a valid and operational FASTag are required to pay twice the applicable user fee if payment is made in cash. On the other hand, users opting to pay via UPI are charged 1.25 times the prescribed fee for the relevant vehicle category.

NHAI said these measures have collectively helped reduce reliance on cash and accelerate the digitisation of the tolling system.

Plaza-level evaluations suggest that cash transactions often lead to congestion, longer wait times during peak traffic hours and disputes related to payments.

A complete transition to digital-only toll payments is expected to enhance operational efficiency, streamline traffic management, minimise delays and improve the overall commuting experience at more than 1,150 fee plazas on various National Highways and Expressways across India.