Will the Government End Cash Payments at National Highways from April 1?

Key Takeaways

The government plans to eliminate cash payments at toll plazas by April 1, 2026.

Digital payment methods like FASTag and UPI will become mandatory.

This initiative aims to improve efficiency and user experience.

FASTag has transformed toll collection with over 98% adoption.

The FASTag Annual Pass simplifies the payment process for frequent travelers.

New Delhi, Feb 20 (NationPress) On Friday, the government announced that the NHAI is seriously considering the complete cessation of cash payments at National Highway toll plazas nationwide, effective April 1, 2026.

This initiative aims to foster a fully digital tolling infrastructure on National Highways.

Once implemented, all toll fees at these plazas will be settled solely through digital payment methods, including FASTag and Unified Payments Interface (UPI).

The Ministry of Road Transport and Highways indicates that this proposed change seeks to enhance the benefits of Electronic Toll Collection and bolster the efficacy and reliability of operations at National Highway fee plazas.

According to the official statement, "This transition is expected to improve the ‘Ease of Commuting’ for users of National Highways by optimizing lane throughput, ameliorating congestion at fee plazas, and increasing consistency and transparency in toll payments."

With over 98 percent adoption of FASTag, toll collection practices in India have undergone significant transformation.

In addition, a substantial majority of toll transactions are now conducted electronically via RFID-enabled FASTag, enabling smooth and contactless passage through toll stations.

The NHAI has also introduced UPI payment options at National Highway toll plazas, providing instant and user-friendly digital payment solutions for travelers across the country.

Currently, vehicles entering a fee plaza without a valid, working FASTag pay double the applicable user fee if they opt for cash payment.

In contrast, users who choose UPI are charged only 1.25 times the standard fee for their vehicle category.

The government emphasized that a complete shift to digital-only payments will enhance operational efficiency, optimize traffic management, reduce delays, and improve the overall experience for National Highway users at more than 1,150 toll plazas across various National Highways and Expressways in the nation.

Meanwhile, the FASTag Annual Pass has surpassed 5 million users, with over 265.5 million transactions recorded within just six months of its launch. This pass allows users to avoid frequent FASTag recharges by making a one-time payment of Rs 3,000 for one year's validity or 200 toll plaza crossings.

Point of View

The government's decision to phase out cash payments at National Highway toll plazas reflects a commitment to enhancing operational efficiency and user experience. This move aligns with global trends of digitization, aiming to make travel smoother and more transparent for all users.

NationPress

12 May 2026

Frequently Asked Questions

What is the date for discontinuing cash payments at National Highways?

The government plans to stop cash payments at National Highway toll plazas starting April 1, 2026.

What payment methods will be accepted after cash payments are discontinued?

After the discontinuation of cash payments, tolls will be payable only through FASTag and Unified Payments Interface (UPI).

How has FASTag adoption impacted toll collection in India?

FASTag adoption has exceeded 98%, significantly transforming toll collection practices and enabling seamless electronic transactions.

What happens if a vehicle enters a toll plaza without a FASTag?

Vehicles without a valid FASTag are charged double the applicable user fee if they choose to pay in cash.

What benefits does the FASTag Annual Pass offer?

The FASTag Annual Pass allows users to make a one-time payment of Rs 3,000 for one year's validity or 200 toll crossings, eliminating frequent recharges.