NHAI plans to end cash toll payments on highways from April 1, 2026

The National Highways Authority of India (NHAI) is considering a complete shift to digital toll payments across National Highways from April 1, 2026. If implemented, cash transactions at highway toll plazas will be discontinued, with payments accepted only through FASTag and UPI.

The move is aimed at creating a fully digital tolling system across the country’s National Highway network. According to NHAI, the proposal builds on the widespread adoption of Electronic Toll Collection (ETC) and is intended to improve the efficiency and reliability of toll plaza operations.

FASTag penetration crosses 98 per cent

FASTag usage has already crossed 98 per cent penetration, significantly reducing dependence on cash payments. Most toll transactions today are processed electronically through RFID-enabled FASTags affixed to vehicles, enabling contactless passage through fee plazas.

UPI facilities are also operational at toll plazas, offering an additional digital payment option for commuters.

Existing penalty structure for non-FASTag users

Under current National Highway fee rules, vehicles arriving at a toll plaza without a valid and functional FASTag are required to pay twice the applicable user fee if the payment is made in cash. In comparison, users who choose to pay through UPI are charged 1.25 times the applicable toll amount for their vehicle category.

NHAI says cash payments continue to contribute to congestion, especially during peak hours, and are often associated with longer waiting times and transaction disputes. Plaza-level assessments indicate that eliminating cash lanes could help improve lane throughput and reduce delays.

Over 1,150 fee plazas to be covered

If the proposal is cleared, all toll payments at over 1,150 fee plazas across National Highways and Expressways will be processed exclusively through digital modes from April 2026.