New Delhi: In a move to develop a fully digital National Highway tolling ecosystem, the National Highways Authority of India (NHAI) is contemplating the complete discontinuation of cash transactions at National Highway fee plazas across the country from April 1, 2026, the Ministry of Road Transport and Highways (MoRTH) said in an official statement on Friday.

Following implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes, including FASTag and the Unified Payments Interface (UPI). The proposed measure aims to consolidate the gains achieved under Electronic Toll Collection and strengthen the efficiency and reliability of fee plaza operations.

The transition is expected to enhance ‘Ease of Commuting’ for National Highway users by improving lane throughput, reducing congestion at fee plazas, and ensuring greater consistency and transparency in toll transactions.

Over the past few years, FASTag penetration has crossed 98 per cent, significantly transforming toll collection practices across the country. Currently, an overwhelming proportion of toll transactions are processed electronically through RFID-enabled FASTags affixed to vehicles, facilitating seamless and contactless movement across toll plazas. Additionally, UPI payment facilities have been operationalised at National Highway toll plazas, ensuring instant and accessible digital payment options for commuters nationwide.

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. In contrast, National Highway users opting to pay via UPI are charged 1.25 times the applicable user fee for their vehicle category. These measures have collectively advanced the objective of reducing dependence on cash transactions and digitising the tolling framework.

According to MoRTH, plaza-level assessments indicate that cash-based payments contribute to congestion, increased waiting times during peak traffic hours, and transaction-related disputes. A complete transition to a digital-only mode of payment is expected to strengthen operational efficiency, improve traffic management, minimise delays, and enhance the overall user experience at over 1,150 fee plazas across various National Highways and Expressways in the country. DeshGujarat