New Delhi, India — February 20, 2026
The government of India is considering a nationwide shift to a fully digital toll collection system that would eliminate cash payments at national highway toll plazas starting April 1, 2026, according to officials.
The proposal, under review by the National Highways Authority of India, aims to streamline toll payments, improve transparency, and reduce congestion by making electronic payments the only accepted mode across all toll booths.
Why the Government Wants a Cashless Toll System
Officials say the move is designed to strengthen the country’s electronic toll collection infrastructure and modernize highway operations. By eliminating manual cash transactions, authorities expect faster processing, improved reliability, and reduced operational friction.
The Ministry of Road Transport and Highways stated that digital-only payments would enhance efficiency, standardize transactions, and support advanced traffic management nationwide.
How Drivers Will Pay Tolls
If implemented, all toll payments on national highways would be accepted exclusively through:
FASTag (RFID-based automatic deduction)
UPI (real-time digital payment)
This would end all cash transactions at toll plazas.
Benefits for Travelers
Authorities say motorists would see measurable improvements, including:
Faster lane movement
Reduced waiting time at toll booths
Less traffic congestion
Transparent toll transactions
Contactless travel experience
More than 1,150 toll plazas nationwide are expected to adopt the system if the plan is approved.
FASTag’s Role in Transforming Tolling
Officials report that FASTag penetration has already crossed 98% nationwide, fundamentally changing toll collection. Most transactions today are processed electronically via RFID, enabling vehicles to pass through toll gates without stopping.
UPI Integration Expands Payment Options
According to NHAI, UPI payment capability has already been introduced at national highway toll plazas, giving travelers an instant digital alternative if FASTag is unavailable or inactive.
Current Toll Payment Rules
At present:
Vehicles without a valid FASTag that pay cash are charged double the standard toll rate.
Users paying via UPI are charged 1.25× the regular toll fee, depending on vehicle category.
Impact of a Fully Digital Toll Network
Officials believe a digital-only tolling ecosystem will:
Improve traffic flow nationwide
Reduce delays
Strengthen monitoring and compliance
Increase operational efficiency
FASTag Annual Pass Gains Popularity
The FASTag Annual Pass has surpassed 5 million users within six months of launch, recording more than 265.5 million transactions.
The pass allows motorists to pay a one-time fee of ₹3,000 for either:
One year of validity, or
Up to 200 toll crossings
This removes the need for repeated FASTag recharges.
