NHAI plans full cashless tolling across National Highways from April 1, 2026

The National Highways Authority of India (NHAI) is contemplating a complete phase-out of cash payments at National Highway fee plazas across the country from April 1, 2026, as part of efforts to build a fully digital tolling ecosystem.

Under the proposed plan, all toll payments at National Highway fee plazas will be processed exclusively through digital modes, such as FASTag or Unified Payments Interface (UPI), according to a government statement issued on Friday.

The move is aimed at consolidating gains achieved through electronic toll collection and improving the efficiency and reliability of toll plaza operations. NHAI said the transition would enhance ease of commuting by improving lane throughput, reducing congestion and ensuring greater transparency in toll transactions.

FASTag penetration crosses 98%

Over the past few years, FASTag adoption has crossed 98 per cent, significantly transforming toll collection practices in India. At present, the vast majority of toll transactions are processed electronically via RFID-enabled FASTags affixed to vehicles, enabling seamless, contactless passage across plazas.In addition, UPI payment facilities have already been operationalised at National Highway toll plazas, offering commuters an instant, accessible digital payment option nationwide.

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 payment is made in cash. In contrast, highway users opting to pay via UPI are charged 1.25 times the applicable user fee for the vehicle category.

NHAI said these measures have helped reduce dependence on cash transactions and advance the digitisation of the tolling framework.

Congestion and efficiency gains

Plaza-level assessments indicate that cash-based payments contribute disproportionately to congestion, longer waiting times during peak traffic hours and transaction-related disputes. A complete shift to digital-only payments is expected to strengthen operational efficiency, improve traffic management and minimise delays.The proposed transition would apply to more than 1,150 fee plazas across the country’s National Highways and Expressways.

NHAI said the initiative aligns with its broader objective of developing a technology-driven, high-efficiency National Highway network that delivers faster and more seamless services to road users across India.