In a major push towards a fully digital toll collection system, cash payments at toll plazas on India’s national highways will be discontinued from April 10, according to a government notification. The move marks a significant step in the government’s efforts to modernise highway infrastructure and streamline toll payments across the country.
The decision follows earlier initiatives aimed at gradually phasing out cash transactions and strengthening electronic toll collection mechanisms across the national highway network.
FASTag and Digital Payments to Become Mandatory
Under the new system, the National Highways Authority of India (NHAI) will process toll payments exclusively through digital modes such as FASTag and the Unified Payments Interface (UPI).
Officials said the shift is designed to:
- Improve commuter convenience
- Increase lane throughput
- Reduce congestion at toll plazas
- Enhance transparency in toll collection
The digital-only system will apply to more than 1,150 toll plazas across national highways and expressways in the country.
Faster Traffic Flow Expected
Authorities believe that removing cash transactions will significantly reduce waiting time at toll booths, allowing vehicles to move more smoothly through toll lanes.
Electronic payments using FASTag, a radio-frequency identification (RFID) based system, already account for the majority of toll collections in India. The latest step is expected to standardise the process and eliminate delays caused by manual cash payments.
NHAI officials also said the new system will help improve the overall highway travel experience while strengthening monitoring and revenue management.
Toll Rates Revised on Highways and Expressways
Alongside the shift to digital payments, authorities have also revised toll rates on certain highways and expressways.
According to officials:
- National highway toll charges for cars may increase by up to 10 percent
- Expressway toll rates in Uttar Pradesh have been raised between 1.5 percent and 3.5 percent
The revised pricing structure will affect cars, SUVs, two-wheelers, and commercial vehicles, leading to slightly higher travel costs on major expressway routes.
Awareness Campaigns and Enforcement Measures
To ensure a smooth transition to the digital-only tolling system, authorities plan to roll out awareness campaigns and enforcement measures nationwide.
Commuters have been advised to:
- Keep their FASTag accounts active
- Ensure sufficient balance in linked bank or wallet accounts
- Link FASTag with valid payment methods
Vehicles without a valid FASTag or sufficient balance may face penalties or delays at toll plazas once the cashless system is fully implemented.
Nationwide Digital Tolling Push
The government views the move as part of a broader effort to modernise India’s highway infrastructure and promote digital payments.
With nationwide implementation underway, the fully digital tolling system is expected to reduce congestion, improve transparency in toll revenue, and create a more efficient travel experience for millions of highway users across India.
