Government considers nationwide digital-only toll payments on highways from April 2026
National Highways Authority of India (NHAI) is evaluating a proposal to discontinue cash payments at toll plazas on National Highways, potentially making digital payment methods mandatory from April 1, 2026. If approved, motorists would be able to pay toll charges only through electronic options such as FASTag or UPI.
At present, India’s highway tolling network already operates largely through electronic collection, with FASTag-based RFID payments accounting for more than 98 percent of all transactions, according to the Ministry of Road Transport and Highways. UPI payments are also available at many toll booths as an alternative cashless option.
Under the current system, vehicles without a valid FASTag are required to pay double the standard toll if they choose to settle the fee in cash. Motorists using UPI instead of FASTag typically pay a slightly higher amount – about 1.25 times the applicable toll – depending on vehicle category.
Officials believe eliminating cash transactions altogether could help streamline toll operations, reduce disputes and improve vehicle flow through plazas. Government assessments have indicated that manual payments often contribute to longer queues, congestion during peak periods and delays in processing vehicles.
The proposed move is still under consideration but if implemented, it would mark a complete transition to digital tolling across the National Highway network. Authorities say such a shift could enhance efficiency, strengthen traffic management and improve the overall travel experience for highway users.
