No More Cash at Toll Plazas from April 1? NHAI Plans 100% Digital Payments
NHAI is planning to make highway tolls fully cashless from April 1, making FASTag and UPI as exclusive payment methods. Here's all you need to know.
By Sanorita
The National Highways Authority of India is evaluating to make the highway toll collection completely cashless from April 1, 2026. With this, FASTag and the Unified Payments Interface (UPI) would become the exclusive payment methods on highways, supporting the government’s Digital India initiative while streamlining transactions and easing congestion at tolls. At present, cash-paying drivers without a FASTag incur double the standard toll, while those paying through UPI are charged 1.25 times the normal fee. Here’s a closer look at what a complete shift to digital tolling could mean for highway users.
Why the Change?
While FASTag usage has soared to 98%, the remaining 2% of cash-based toll transactions continue to create bottlenecks on National Highways. According to National Highways Authority of India data, cash payments are the leading cause of lane congestion, as manual processing takes far longer than automated RFID scans. They also contribute to fuel wastage, with idling vehicles increasing travel time and carbon emissions.
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Additionally, cash payments frequently lead to disputes over change or counterfeit notes, creating delays and frustration for commuters. Phasing out these remaining cash transactions is expected to make traveling faster and smoother on highways.
How Cashless Highways Will Benefit Users?
The government’s decision to go fully cashless in terms of toll payments and adopt digital methods will be significant for both the economy and daily commuters. It will boost efficiency, increase transparency, and improve revenue collection, driving economic growth and strengthening India’s financial ecosystem. With cash transactions removed, toll lanes can process up to 40% more vehicles per hour, reducing long waits and weekend congestion on the busiest highways.
Moreover, reduced idling will result in fuel efficiency, cutting travel costs for motorists. Payments through FASTag and UPI offer more transparency, real-time records, instant SMS notifications, and accurate expense tracking for fleet operators. For logistic industry, cashless tolls will help in faster deliveries.
