The National Highways Authority of India (NHAI) is planning to stop cash payments at toll plazas on National Highways from April 1. If the proposal is approved, all toll payments will have to be made digitally through FASTag or UPI.
In a statement issued on Thursday, NHAI said the aim is to create a fully digital toll system and build on the progress already made in electronic toll collection. The move is expected to make travel smoother by reducing traffic jams at toll plazas, speeding up vehicle movement and bringing more transparency to toll payments.
FASTag usage crosses 98% across India
Over the past few years, FASTag use has crossed 98 per cent across the country. Most vehicles now pay toll electronically through RFID-enabled FASTags fixed on their windshields, allowing them to pass through toll plazas without stopping. UPI payment options have also been introduced at toll plazas, giving commuters another quick and convenient digital payment method.
As per existing toll rules, vehicles that enter a toll plaza without a valid working FASTag and choose to pay in cash are charged double the normal toll amount. Those who pay using UPI are charged 1.25 times the applicable toll fee for their vehicle category.
Over 1,150 toll plazas to go fully digital
According to plaza-level reviews, cash payments often lead to longer queues, delays during peak hours and disputes over transactions. By shifting completely to digital payments, NHAI expects to improve traffic flow, reduce waiting time and make toll operations more efficient at over 1,150 toll plazas on National Highways and Expressways across the country, news agency ANI reported.
This step is part of NHAI’s larger plan to build a modern, technology-driven highway network that offers faster and smoother travel for road users nationwide.