The National Highways Authority of India (NHAI) is considering discontinuing cash payments at highway toll plazas from April 1, requiring commuters to use only digital modes such as FASTag or UPI for toll payments.

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 National Highways Authority of India (NHAI) said.

The authority said it is contemplating completely discontinuing cash transactions at the National Highway fee plazas across the country from April 1, 2026, in order to develop a fully digital National Highway tolling ecosystem.

“The proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency & reliability of National Highway fee plaza operations,” it said.

According to NHAI, the transition will help to improve lane throughput, reduce congestion at fee plazas and bring greater consistency and transparency in toll transactions.

In the past few years, over 98 per cent penetration of FASTag has transformed toll collection practices in the country.

Most toll transactions are now processed electronically through RFID-enabled FASTag affixed to vehicles, allowing seamless, contactless movement across toll plazas.

UPI payment facilities have also been operationalized at National Highway toll plazas, providing instant and accessible digital payment options for commuters nationwide.

As per National Highway fee rules, vehicles entering a fee plaza without a valid, functional FASTag are charged twice the applicable user fee, if the fee payment is made in cash.

Whereas National Highway users who opt to pay via UPI are charged only 1.25 times the user fee for the applicable vehicle category.

“These initiatives have collectively advanced the objective of reducing dependency on cash transactions and digitizing the tolling framework,” NHAI said.

Plaza-level assessments indicate that cash-based payments contribute to congestion, increased waiting times during peak traffic periods and transaction-related disputes.

A complete transition to digital-only mode of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall National Highway user experience at over 1,150 fee plazas on various National Highways and Expressways in the country.