NHAI is likely to stop cash payments at toll plazas along the National Highway from April 1

This move aims to develop a fully digital toll ecosystem and consolidate the gains made in electronic toll collection. | Photo credit: Shanker Chakravarty

According to an official statement issued on Thursday, the move is aimed at developing a fully digital toll ecosystem and consolidating the gains made in the field of electronic toll collection. The transition is expected to increase “ease of commuting” by improving lane throughput, reducing congestion at payment plazas and ensuring greater consistency and transparency in toll transactions.

NHAI said FASTag penetration has crossed 98 percent in recent years, significantly changing toll collection practices in the country. Currently, the majority of toll transactions are processed electronically through RFID-enabled FASTags fitted to vehicles, allowing seamless and contactless movement across toll plazas. In addition, UPI payment facilities have been operationalized at toll plazas on the National Highway to provide instant and accessible digital payment options.

As per the National Highway Fare Rules, vehicles entering a surcharge plaza without a valid and functional FASTag will be charged twice the applicable user surcharge if the payment is made in cash. Users who choose to pay via UPI will pay 1.25 times the applicable user fee for the respective vehicle category.

Plaza-level assessments show that cash payments contribute to congestion, longer wait times during peak hours and transaction-related disputes. A complete shift to digital-only payments is expected to boost operational efficiency, improve traffic management and minimize delays at over 1,150 payment plazas along national highways and highways in the country.

The initiative is in line with NHAI’s broader objective to develop a technology-driven and highly efficient national highway network that provides faster and seamless services to highway users across the country.

Published on February 21, 2026