The government announced on Friday that cash payments at all National Highway toll plazas will likely be discontinued from April 1, 2026, as part of a move to establish a fully digital tolling ecosystem. Post-implementation, all toll payments will be processed exclusively via FASTag or Unified Payments Interface (UPI), eliminating cash transactions nationwide.

According to the Ministry of Road Transport and Highways, the measure is aimed at consolidating the gains of Electronic Toll Collection (ETC) while enhancing operational efficiency and transparency at toll plazas. Officials highlighted that the transition will reduce congestion, improve lane throughput, and ensure a seamless travel experience for commuters across the country.

FASTag penetration has already exceeded 98 per cent, significantly transforming toll collection practices. Vehicles without functional FASTags are currently charged double the toll fee if paying in cash, whereas UPI payments attract only a 1.25x fee for the applicable vehicle category. The digital transition is expected to further standardize toll operations across more than 1,150 plazas nationwide.

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The NHAI has operationalised UPI payment facilities at all National Highway toll plazas, providing commuters with instant, accessible, and contactless payment options. The move complements other digital initiatives, including RFID-enabled FASTags that allow vehicles to pass seamlessly through toll lanes without stopping.

The FASTag Annual Pass, which allows unlimited toll crossings for a one-time payment of Rs 3,000 per year, has already crossed 50 lakh users, with over 26.55 crore transactions recorded within six months of launch. The government expects the full digital shift to significantly improve traffic management and reduce delays, offering a modernized, hassle-free travel experience to highway users.

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