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India to End Cash Payments at National Highways from April 2026

The National Highways Authority of India plans to completely phase out cash transactions at all National Highway toll plazas starting April 1, 2026. This move will mandate digital payments exclusively through FASTag or Unified Payments Interface (UPI). The government states this will enhance operational efficiency, reduce congestion, and bring greater transparency to toll transactions. The transition builds on the existing high penetration of FASTag, which already facilitates over 98% of electronic toll collections.

Key Points: National Highways Go Fully Digital: No Cash from April 2026

  • Fully digital tolling from April 2026
  • Payments via FASTag or UPI only
  • Aims to reduce congestion and improve transparency
  • Over 98% FASTag penetration already achieved
  • Over 1,150 fee plazas affected nationwide
2 min read

Govt likely to discontinue cash payments at National Highways from April 1

NHAI to discontinue cash toll payments nationwide from April 1, 2026. All transactions will be via FASTag or UPI to reduce congestion and improve efficiency.

"The transition will help to enhance 'Ease of Commuting' for National Highway users - Ministry of Road Transport and Highways"

New Delhi, Feb 20

The government on Friday said that the NHAI is contemplating to completely discontinue cash transactions at the National Highway fee plazas across the country from April 1, 2026.

The move will develop a fully digital National Highway tolling ecosystem.

Post implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI).

According to the Ministry of Road Transport and Highways, the proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of National Highway fee plaza operations.

"The transition will help to enhance 'Ease of Commuting' for National Highway users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency in toll transactions," according to the official statement.

Over 98 per cent penetration of FASTag has significantly transformed toll collection practices in the country.

Moreover, an overwhelming proportion of toll transactions are processed electronically through RFID-enabled FASTag affixed to vehicles, facilitating seamless and contactless movement across toll plazas.

According to the NHAI, UPI payment facilities have been operationalised at the National Highway toll plazas, ensuring availability of instant and accessible digital payment options for National Highway commuters nationwide.

Vehicles entering a fee plaza without a valid, functional FASTag are currently charged twice the applicable user fee, if the fee payment is made in cash.

Whereas National Highway users who opt to pay via UPI are charged only 1.25 times of the user fee for the applicable vehicle category.

"A complete transition to digital only mode of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall National Highway user experience at over 1,150 fee plazas on various National Highways and Expressways in the country," said the government.

Meanwhile, FASTag Annual Pass has crossed 50 lakh users, with over 26.55 crore transactions recorded within six months of its launch. The Annual Pass eliminates the need to frequently recharge FASTag through a one-time fee payment of Rs 3,000 for one year's validity or 200 toll plaza crossings.

- IANS

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Reader Comments

S
Sarah B
While I support the digital push, I'm concerned about the elderly and those in rural areas who might not be tech-savvy. What about tourists or people whose FASTag might malfunction? The double charge for cash seems punitive. There should be a robust support system in place at every plaza to assist people.
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Arjun K
Good move, but the implementation must be flawless. We've all seen how sometimes the FASTag reader doesn't work and the attendant asks for cash anyway. If it's going to be 100% digital, the technology at the plazas needs a major upgrade first. Also, UPI is a great backup option for Indians.
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Priya S
The Annual Pass is a game-changer for frequent travelers like me! Rs. 3000 for a year is very reasonable. This will save so much time and hassle. Hope they also introduce shorter validity passes for occasional users. Overall, a very positive development for highway commuters.
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Vikram M
Transparency is the biggest win here. No more "shortage of change" drama from toll operators. Every transaction will be recorded digitally. This should also help reduce corruption and ensure all toll money is properly accounted for. A solid step forward.
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Michael C
Interesting to see India leapfrogging in digital payments infrastructure. The scale is impressive - over 1,150 plazas. The 1.25x charge for UPI seems like a smart incentive to push for FASTag adoption. The key will be ensuring reliable internet connectivity at all these remote toll locations.

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