Cash Payments at National Highway Fee Plazas To End From First April 2026

24 Feb 2026 CW Team

NHAI officials noted that over 98 per cent penetration of FASTag has transformed toll collection practices, with most transactions processed electronically through RFID-enabled FASTag affixed to vehicles. Unified Payments Interface facilities are already operational at plazas, offering instant and accessible digital options for commuters across the network. The combined systems are intended to deliver a seamless and contactless passage for users.

National Highway fee rules currently penalise vehicles entering a plaza without a valid, functional FASTag by charging twice the applicable user fee if payment is made in cash, while users opting to pay via UPI are levied one and a quarter times the user fee for the applicable vehicle category. Plaza-level assessments indicate that cash-based payments contribute to congestion, longer waiting times during peak periods and increased transaction disputes. A full shift to digital-only payments is projected to strengthen operational efficiency, improve traffic management and minimise delays.

NHAI said the measure will enhance the ease of commuting for National Highway users at over 1,150 fee plazas on various National Highways and expressways, and will support the broader objective of developing a technology-driven, high-efficiency highway network. Authorities expect the reform to bring greater consistency in tolling and to improve overall user experience without introducing new manual procedures. Implementation details and compliance mechanisms are to be finalised prior to the start date.

The National Highways Authority of India (NHAI) is proposing to discontinue cash payments at National Highway fee plazas from first April 2026, with all tolls to be processed through FASTag or Unified Payments Interface (UPI). The policy aims to consolidate gains in electronic toll collection and to strengthen the efficiency and reliability of fee plaza operations nationwide. The transition is expected to improve lane throughput, reduce congestion and increase transparency in toll transactions. NHAI officials noted that over 98 per cent penetration of FASTag has transformed toll collection practices, with most transactions processed electronically through RFID-enabled FASTag affixed to vehicles. Unified Payments Interface facilities are already operational at plazas, offering instant and accessible digital options for commuters across the network. The combined systems are intended to deliver a seamless and contactless passage for users. National Highway fee rules currently penalise vehicles entering a plaza without a valid, functional FASTag by charging twice the applicable user fee if payment is made in cash, while users opting to pay via UPI are levied one and a quarter times the user fee for the applicable vehicle category. Plaza-level assessments indicate that cash-based payments contribute to congestion, longer waiting times during peak periods and increased transaction disputes. A full shift to digital-only payments is projected to strengthen operational efficiency, improve traffic management and minimise delays. NHAI said the measure will enhance the ease of commuting for National Highway users at over 1,150 fee plazas on various National Highways and expressways, and will support the broader objective of developing a technology-driven, high-efficiency highway network. Authorities expect the reform to bring greater consistency in tolling and to improve overall user experience without introducing new manual procedures. Implementation details and compliance mechanisms are to be finalised prior to the start date.

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