NHAI planning for all toll payments at National Highway fee plazas to be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI)
The National Highways Authority of India (NHAI) is contemplating to completely discontinue cash transactions at the National Highway toll fee plazas across India, from 1st April 2026.
After implementation of this restriction, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI).
Currently, toll transactions are very largely processed electronically through RFID-enabled FASTag that are affixed to vehicles, which provide a seamless and contactless movement through the toll plazas. In addition to that, UPI payment facilities are also available at the National Highway toll plazas, which provide a quick digital payment option for National Highway travellers.
As per National Highway fee rules, vehicles entering a fee plaza without a valid or functional FASTag are charged twice the applicable user fee, if the fee payment is made in cash.
And for National Highway users who opt to pay via UPI are charged only 1.25 times of the user fee for the applicable vehicle category. These measures were implemented for reducing dependency on cash transactions and digitising the tolling framework
As per the report by Ministry of Road Transport & Highways (MoRTH), today on 20 February 2026, plaza-level assessments indicate that cash-based payments contribute to congestion, increased waiting times during peak traffic periods and transaction-related disputes.
The report further states that a complete transition to digital-only mode of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall National Highway user experience at over 1,150 fee plazas on various National Highways and Expressways in India.
The proposed measure of discontinuing the cash payment option at National Highway toll fee plazas is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of National Highway fee plaza operations.
As per the report, the transition will help to enhance ‘Ease of Commuting’ for National Highway users by improving lane throughput and reducing congestion at fee plazas, and also bring greater consistency and transparency in toll transactions.
- Cash Payments at National Highway Fee Plazas Likely to be Discontinued from 1st April 2026 - Ministry of Road Transport & Highways, on PIB. Posted On: 20 FEB 2026 5:01PM by PIB Delhi.