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

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

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code