Cashless highways on the cards as NHAI plans to scrap cash payments at toll plazas from 1st April 2026

Representative image

• NHAI to end cash toll payments by April 2026
• Only digital payments like FASTag and UPI will be accepted
• Move aims to reduce congestion and improve toll plaza efficiency

Did our AI summary help?

The National Highways Authority of India is considering phasing out cash payments at toll plazas across the country beginning April 1, 2026, in a move aimed at creating a fully digital tolling system on National Highways.

If the proposal is finalised, commuters will be required to pay toll charges only through digital channels such as FASTag or Unified Payments Interface. The authority said the step is intended to build on the progress made in Electronic Toll Collection and to improve the efficiency and reliability of operations at fee plazas.

According to NHAI, the transition will enhance ease of commuting for highway users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency to toll transactions.

FASTag adoption has already crossed 98 percent in recent years, reshaping the way tolls are collected nationwide. Most vehicles now pass through plazas using RFID enabled FASTags, which allow contactless and seamless payments without stopping for cash transactions.

UPI payment options have also been made available at National Highway toll plazas to provide commuters with an additional digital mode that is instant and widely accessible.

Under the existing National Highway fee rules, vehicles entering a toll plaza without a valid and functional FASTag must pay twice the applicable user fee if they opt for cash. However, those paying through UPI are charged 1.25 times the applicable user fee for their vehicle category.

Plaza level assessments have indicated that cash transactions contribute to longer queues, delays during peak traffic hours and disputes related to payments. NHAI believes that eliminating cash will strengthen operational efficiency, improve traffic management, minimise delays and enhance the overall user experience at more than 1,150 fee plazas on National Highways and Expressways across India.

The proposed shift is in line with the authority’s broader plan to build a technology driven and high efficiency National Highway network that offers faster and more seamless services to road users nationwide.