NHAI is considering ending cash payments at National Highway toll plazas from April 1, 2026. The plan is to move to a fully digital system using FASTag and UPI to reduce congestion, improve lane throughput, and enhance transaction transparency.
The National Highways Authority of India (NHAI) is contemplating discontinuing cash transactions at National Highway fee plazas across the country from April 1, 2026, with all toll payments proposed to be processed exclusively through digital modes such as FASTag and Unified Payments Interface (UPI).
Aims of a Digital Tolling Ecosystem
According to an official statement issued on Thursday, the move is aimed at developing a fully digital tolling ecosystem and consolidating the gains achieved in electronic toll collection. The transition is expected to enhance 'Ease of Commuting' by improving lane throughput, reducing congestion at fee plazas and ensuring greater consistency and transparency in toll transactions.
Current FASTag Penetration
NHAI said that over the past few years, FASTag penetration has crossed 98 per cent, significantly transforming toll collection practices in the country. Currently, a majority of toll transactions are processed electronically through RFID-enabled FASTags affixed to vehicles, enabling seamless and contactless movement across toll plazas.
UPI Payments and Fee Structure
In addition, UPI payment facilities have been operationalised at National Highway toll plazas to provide instant and accessible digital payment options.
As per National Highway fee rules, vehicles entering a fee plaza without a valid and functional FASTag are charged twice the applicable user fee if payment is made in cash. Users opting to pay via UPI are charged 1.25 times the applicable user fee for the respective vehicle category.
Boosting Operational Efficiency
Plaza-level assessments indicate that cash-based payments contribute to congestion, longer waiting times during peak hours and transaction-related disputes. A complete shift to digital-only payments is expected to strengthen operational efficiency, improve traffic management and minimise delays at more than 1,150 fee plazas across National Highways and Expressways in the country.
The initiative aligns with NHAI's broader objective of developing a technology-driven and high-efficiency National Highway network that delivers faster and seamless services to highway users nationwide. (ANI)
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