FASTag Update: Non-Users Pay 25% Extra via UPI, Cash Payments Remain Double

There’s a new update to FASTag rules that will change the way tolls are paid on highways. The Ministry of Road Transport and Highways (MoRTH) has revised the toll collection system across all National Highways. Until now, vehicles without a FASTag were required to pay double the toll fee, regardless of the payment method. However, starting November 15, 2025, toll fees for cash payments without a FASTag will continue to be double the regular charge, while digital payments without a FASTag, such as those made through UPI, will now be subject to a toll fee of 1.25 times the standard rate instead of double. For example, if the standard toll with FASTag is Rs 100, cash payments will amount to Rs 200. However, those using digital payment options like Unified Payment Interface (UPI) without a FASTag will pay 1.25 times the normal toll, which would be Rs 125.

The most recent change in toll fee structure aims to push more drivers toward FASTag usage while providing an easier digital payment option for those who haven’t yet switched. By charging 1.25 times the regular toll for digital payments without FASTag, the government encourages cashless payments and reduces reliance on slower cash transactions. Charging double for cash payments helps discourage their use and reduces bottlenecks at toll plazas.

Also Read: Royal Enfield Now on Flipkart: Classic 350, Bullet, Meteor, and More Available

The shift is expected to improve traffic movement and cut down waiting times on highways. Overall, the initiative supports a smoother, faster toll collection process and moves the country closer to a fully digital and efficient toll payment ecosystem.

What is FASTag, and How Will the New Rules Help?

FASTag is an electronic toll collection system that enables seamless, cashless payments on India’s National Highways. It uses Radio Frequency Identification (RFID) technology for automatic toll collection. An RFID tag attached to the vehicle’s windshield communicates with scanners at toll booths, deducting the toll charges directly from the linked bank or prepaid account. The system eliminates the need to stop and pay manually, enabling vehicles to pass through toll plazas quickly.

Also Read: GST Council Cuts Tax on Small Cars and Bikes Under 350cc Ahead of Festive Season

The government’s decision to lower the penalty for digital payments without FASTag to 1.25 times the toll fee marks a positive move toward promoting cashless transactions. It provides more flexibility for drivers who have not yet adopted FASTag, encouraging them to use digital payment methods instead of cash. At the same time, keeping higher fees for cash payments discourages slower cash transactions that often lead to congestion and delays at toll plazas.