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NHAI to End Cash Payments at National Highways Toll Plazas from April 2026

The National Highways Authority of India (NHAI) is planning to discontinue cash transactions at all National Highway toll plazas from April 1, 2026. All toll payments will be processed exclusively through digital modes like FASTag and UPI to create a fully digital ecosystem. This move aims to enhance ease of commuting by reducing congestion, improving lane throughput, and ensuring transparency. The transition builds on the current 98% penetration of FASTag, which has already transformed toll collection practices across the country.

Key Points: NHAI to Stop Cash Toll Payments, Go Fully Digital by 2026

  • Cash payments to end from April 1, 2026
  • Mandatory use of FASTag or UPI
  • Aims to reduce congestion and waiting times
  • Over 98% FASTag penetration achieved
  • Vehicles without FASTag face double fee
2 min read

NHAI likely to discontinue cash payments at National Highway toll plazas from April 1

NHAI plans to end cash payments at all National Highway toll plazas from April 1, 2026, mandating FASTag or UPI for seamless, congestion-free travel.

"developing a fully digital tolling ecosystem and consolidating the gains achieved in electronic toll collection - NHAI"

New Delhi, February 21

The National Highways Authority of India is contemplating discontinuing cash transactions at National Highway fee plazas across the country from April 1, 2026, with all toll payments proposed to be processed exclusively through digital modes such as FASTag and Unified Payments Interface.

According to an official statement issued on Thursday, the move is aimed at developing a fully digital tolling ecosystem and consolidating the gains achieved in electronic toll collection. The transition is expected to enhance 'Ease of Commuting' by improving lane throughput, reducing congestion at fee plazas and ensuring greater consistency and transparency in toll transactions.

NHAI said that over the past few years, FASTag penetration has crossed 98 per cent, significantly transforming toll collection practices in the country. Currently, a majority of toll transactions are processed electronically through RFID-enabled FASTags affixed to vehicles, enabling seamless and contactless movement across toll plazas. In addition, UPI payment facilities have been operationalised at National Highway toll plazas to provide instant and accessible digital payment options.

As per National Highway fee rules, vehicles entering a fee plaza without a valid and functional FASTag are charged twice the applicable user fee if payment is made in cash. Users opting to pay via UPI are charged 1.25 times the applicable user fee for the respective vehicle category.

Plaza-level assessments indicate that cash-based payments contribute to congestion, longer waiting times during peak hours and transaction-related disputes. A complete shift to digital-only payments is expected to strengthen operational efficiency, improve traffic management and minimise delays at more than 1,150 fee plazas across National Highways and Expressways in the country.

The initiative aligns with NHAI's broader objective of developing a technology-driven and high-efficiency National Highway network that delivers faster and seamless services to highway users nationwide.

- ANI

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Reader Comments

R
Rohit P
Good move for efficiency, but what about older drivers or people in rural areas who are not comfortable with digital payments? NHAI needs to ensure there is proper support and education before making this mandatory.
A
Aman W
Finally! Cash payments slow everyone down. I travel frequently for work and the FASTag lanes are always smooth. This will definitely improve 'Ease of Commuting' as they say. Hope they stick to the 2026 deadline.
S
Sarah B
The double charge for cash is already a strong incentive. 98% penetration is impressive. This seems like the natural next step for a digital India. Less congestion and pollution at plazas is a win for everyone.
V
Vikram M
Transparency is key. With all digital transactions, there should be no more arguments about change or incorrect toll amounts. The UPI option is also great for those occasional trips. Bharat is going digital! 💯
K
Karthik V
While I support the move, I hope NHAI has a robust system in place. What if the FASTag reader fails or there's a network issue for UPI? We need reliable backup solutions on-site to avoid being stranded.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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