In a significant step toward a fully digital toll system on national highways, the National Highways Authority of India (NHAI) plans to ban cash payments at toll plazas starting April 1, 2026. Once this change takes effect, all toll charges must be paid through digital methods, mainly FASTag or Unified Payments Interface (UPI).
The proposal aims to build on the successes of electronic toll collection (ETC) and eliminate the problems tied to using physical cash.
The End of paper currency on highways
The shift to a “digital-only” payment system seeks to increase lane capacity and significantly reduce congestion. NHAI officials state that cash transactions are the main cause of disputes and long wait times during peak hours. By adopting FASTag and UPI, the government wants to ensure full transparency and a consistent experience at over 1,150 toll plazas on national highways and expressways.
FASTag penetration hits 98%
This decision follows the successful rollout of the RFID-based FASTag system, which currently has a penetration rate of over 98% across India.
Contactless travel. Most vehicles can now pass through plazas without stopping, thanks to electronic scanners.
UPI integration. For those who do not have enough balance on their FASTag, UPI has been introduced as a quick payment option, offering a convenient digital alternative.
Current penalty structure for non-digital payments
Under current rules, NHAI has already encouraged digital use by implementing strict penalties for cash users:
Invalid FASTag/cash. Vehicles that enter a FASTag lane and choose to pay cash are charged double (2x) the required fee.
UPI payments. Vehicles using UPI payments currently pay 1.25 times the standard fee for their category.
The proposed April 2026 rule will go further, moving toward completely eliminating cash counters.
Benefits: Smoother traffic and better management
Internal reviews by NHAI show that getting rid of cash lanes will:
Reduce wait times. Eliminate the 30- to 60-second delay per vehicle caused by cash transactions.
Improve traffic management. Allow for better data-driven flow control on busy highways.
Operational efficiency. Decrease the costs of handling physical cash and security at remote plaza locations.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
