Cash Payments at National Highway Fee Plazas Likely to be Discontinued from 1st April 2026

• 21 Feb 2026
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The National Highway Authority of India (NHAI) is likely to completely discontinue cash transactions at the National Highway fee plazas across India from 1st April 2026 onwards to develop a wholly-digital National Highway tolling ecosystem. After implementation, all the toll payments at the National Highway fee plazas will be processed only via digital modes using Unified Payments Interface (UPI) or FASTag.

NHAI’s proposed measure intends to consolidate the gains achieved in electronic toll collection and underpin the efficiency and reliability of the National Highway fee plaza operations. Through this transition, the ease of commuting will be enhanced for the national highway users. It will improve lane throughput, reduce congestion at the fee plazas and bring about a greater consistency and transparency in the transactions pertaining to toll. 

The adoption of FASTag has reached over 98 percent in the past few years. It has significantly transformed toll collection practices in the country. As far as the present scenario is concerned, a large majority of transactions pertaining to toll are processed in electronic mode via RFID-enabled FASTags that are affixed to vehicles. They allow for smooth, contactless movement of vehicles at toll plazas. 

Moreover, UPI payment options have been introduced at National Highway toll plazas. These options provide instant as well as accessible digital payment methods for commuters across the nation. As per National Highway fee regulations, vehicles entering a toll plaza without being in possession of a valid and functional FASTag are charged twice the applicable user fee if they decide to make the payment in cash. 

In contrast to the above, National Highway users who choose to pay via UPI are charged only 1.25 times the user fee for their vehicle category. These initiatives have a collective aim to reduce reliance on cash transactions and digitize the tolling system. Assessments at toll plazas showcase that cash-based payments contribute to congestion, longer waiting time during peak traffic and disputes pertaining to transactions. 

Transition to a completely digital only payment system will ultimately enhance operational efficiency, improve management of traffic and minimize delays that are currently faced at the fee plazas. Overall, it will provide a better experience for National Highway users at over 1,150 toll plazas across various National Highways and Expressways. 

This initiative of the NHAI aligns with the broader goal of the authority to develop a tech-led, highly efficient National Highway network that delivers faster and more seamless services to users nationwide.

Source: Press Information Bureau (PIB)