Digital-only toll collection goes live across national highways from April 10

Under the new system, vehicles without a valid FASTag can still make payments via UPI but will be charged 1.25 times the applicable toll fee, incentivising adoption of electronic toll collection.

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The government has implemented a fully digital toll collection system across national highway fee plazas from April 10, mandating payments through FASTag or UPI, according to the Ministry of Road Transport and Highways.The move eliminates cash transactions at toll plazas nationwide, aimed at improving efficiency, transparency and reducing congestion. However, the rollout has been deferred in states including Tamil Nadu, Kerala, Assam, West Bengal and Puducherry due to the Model Code of Conduct in force for elections.Under the new system, vehicles without a valid FASTag can still make payments via UPI but will be charged 1.25 times the applicable toll fee, incentivising adoption of electronic toll collection.The transition builds on the near-universal penetration of FASTag, which already accounts for the majority of toll transactions and enables seamless, contactless movement across plazas.

According to official statements and industry reports, the shift is expected to significantly reduce waiting time at toll booths, cut fuel consumption and streamline traffic flow on national highways.

The initiative is part of the government’s broader push to create a technology-driven highway network and promote a cashless ecosystem, with over 1,150 toll plazas expected to benefit from improved throughput and reduced transaction-related delays.