The National Highways Authority of India (NHAI) is making a major change to how toll taxes are collected across the country. Starting from April 1, 2026, cash payments will no longer be accepted at toll plazas on National Highways. Under the new digital-only system, drivers must use either FASTag or Unified Payments Interface (UPI) to pay the user fee. This move aims to make highway travel smoother and reduce the long waiting times that commuters often face at toll gates.
New Payment Rules and Penalty Charges
With the discontinuation of cash lanes, strict rules are being put in place for payments. If a vehicle enters a toll lane without a valid or functional FASTag and the driver insists on paying by cash, they will have to pay double the standard fee as a penalty. The authorities are encouraging everyone to stick to FASTag for the lowest rates.
For those who choose to pay via UPI instead of FASTag, there is also an extra cost. Commuters using UPI will be charged 1.25 times the actual toll fee. This pricing structure is designed to push for 100% adoption of the RFID-based FASTag system, which is the fastest way to clear a toll plaza.
Why NHAI is Removing Cash Options?
The decision to remove cash transactions covers over 1,150 toll plazas in India. According to officials, cash payments are the main reason for congestion and disputes at toll booths during busy hours. By going fully digital, the NHAI wants to increase transparency in revenue collection and eliminate manual errors.
Recent data shows that FASTag usage has already crossed 98%, making this transition feasible for most drivers. The shift is part of a larger plan by the Ministry of Road Transport and Highways to create a technology-driven network where vehicles can pass through lanes quickly without stopping, saving fuel and time for everyone.
