**Executive Summary**
The National Highways Authority of India (NHAI) is planning to discontinue cash payments at all National Highway fee plazas nationwide starting April 1, 2026. All toll payments will then be exclusively processed digitally via FASTag or Unified Payments Interface (UPI) to improve efficiency, reduce congestion, and enhance transparency. This is in line with NHAI's broader goal of developing a technology-driven highway network.
**Key Points / Main Content**
* **Discontinuation of Cash Payments:**
* Cash transactions will be completely discontinued at National Highway fee plazas across the country.
* The effective date for this change is April 1, 2026.
* **Digital Payment Methods:**
* All toll payments will be processed exclusively through digital modes, specifically FASTag or UPI.
* **Objectives and Benefits:**
* Consolidates gains from Electronic Toll Collection (ETC).
* Strengthens the efficiency and reliability of fee plaza operations.
* Enhances the 'Ease of Commuting' for National Highway users.
* Improves lane throughput and reduces congestion.
* Brings greater consistency and transparency in toll transactions.
* **Current Status & Impact:**
* Over 98% of toll collection is already done via FASTag.
* UPI payment facilities are already operational at National Highway toll plazas.
* Vehicles entering without FASTag pay twice the fee in cash, while UPI payments incur 1.25 times the fee.
* The transition aims to improve traffic management, minimize delays, and enhance user experience at over 1,150 fee plazas.
**Impact Analysis**
**Stakeholder: National Highway Users**
* **Impact**
* Users will need to adopt FASTag or UPI for toll payments.
* Experience reduced congestion and faster lane throughput.
* Benefit from more transparent and consistent toll transactions.
* **Action Required**
* Obtain and use FASTag for their vehicles or utilize UPI payment options at toll plazas.
**Stakeholder: National Highways Authority of India (NHAI)**
* **Impact**
* Strengthen operational efficiency
* Improve traffic management
* Minimize delays
* Enhance user experience
* **Action Required**
* Continue to develop and support digital payment infrastructure at toll plazas.
* Ensure that the UPI payment system is fully functional at all toll plazas.
* Inform and educate highway users about the changes and digital payment options.
Key Entities Referenced
Ministry of Road Transport & Highways: The ministry overseeing the National Highway network and related policies.
FASTag: A RFID-enabled tag affixed to vehicles for electronic toll collection.
Unified Payments Interface (UPI): A real-time payment system used as a digital payment mode at National Highway fee plazas.
National Highway Authority of India (NHAI): The agency contemplating discontinuing cash transactions at National Highway fee plazas.
Ministry of Road Transport & Highways
Cash Payments at National Highway Fee Plazas
Likely to be Discontinued from 1st April 2026
All toll payments at National Highway fee plazas will be
processed exclusively through digital modes using FASTag or
Unified Payments Interface (UPI)
Posted On: 20 FEB 2026 5:01PM by PIB Delhi
In order to develop fully digital National Highway tolling ecosystem, NHAI is contemplating to
completely discontinue cash transactions at the National Highway fee plazas across the country from 1st
April 2026. 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 proposed
measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the
efficiency & reliability of National Highway fee plaza operations. The transition will help to enhance
‘Ease of Commuting’ for National Highway users by improving lane throughput, reducing congestion at
fee plazas and bringing greater consistency and transparency in toll transactions.
In the past few years, over 98 percent penetration of FASTag has significantly transformed toll collection
practices in the country. At present, an overwhelming proportion of toll transactions are processed
electronically through RFID-enabled FASTag affixed to vehicles, facilitating seamless and contactless
movement across toll plazas. In addition, UPI payment facilities have been operationalized at the National
Highway toll plazas, ensuring availability of instant and accessible digital payment options for National
Highway 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 of 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.
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.
The initiative is aligned with the broader NHAI objective of developing a technology-driven, high-
efficiency National Highway network that delivers faster, seamless services to National Highway users
across the country.
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