NHAI Plans Cashless Toll Payments From April 1, 2026, FASTag and UPI to Become Mandatory
Highway travel across India could soon shift to a fully digital experience as the (NHAI) considers eliminating cash payments at toll plazas from April 1, 2026. If implemented, commuters would need to pay toll charges exclusively through electronic modes such as or , marking a major step toward digital infrastructure on national highways.
Officials indicated that the proposal aims to create a seamless digital toll collection ecosystem across the country’s highway network. After the proposed deadline, payments at fee plazas would be processed only through electronic channels, reducing manual transactions and improving operational efficiency.
The move aligns with broader government efforts to digitise public services and transport infrastructure, particularly in high-traffic corridors where delays at toll booths remain a persistent issue.
FASTag adoption has expanded rapidly since its nationwide rollout, with more than 98 percent of vehicles already using the RFID-based system. The sticker allows automatic toll deduction as vehicles pass through dedicated lanes, minimising the need to stop. UPI payment options have also been introduced at several toll plazas, offering an additional digital alternative for motorists.
Under current rules, vehicles without a valid FASTag must pay double the toll amount when using cash lanes, encouraging digital adoption. Motorists choosing UPI payments at certain locations may incur a slightly higher fee compared to FASTag transactions, depending on local implementation.
Authorities believe that removing cash payments could significantly reduce congestion, waiting times and disputes at toll plazas. With more than 1,150 toll points operating across national highways and expressways, even small delays per vehicle accumulate into large traffic bottlenecks. A fully digital system is expected to improve traffic flow, enhance revenue transparency and reduce operational costs linked to cash handling.
However, the transition may pose challenges for motorists in remote areas or those unfamiliar with digital payments. Experts suggest awareness campaigns, easier FASTag onboarding and reliable connectivity will be crucial to ensure a smooth shift. Transport analysts also highlight potential benefits such as data-driven traffic planning and integration with future mobility initiatives like GPS-based tolling.
If approved, the proposal could pave the way for more advanced toll technologies, including barrier-free tolling and distance-based charges. India has been testing such models as part of long-term plans to modernise highway infrastructure. For commuters, the immediate change would mean preparing for fully digital payments before the 2026 deadline.