Commuters on National Highways may soon have to rely entirely on digital payment modes at toll plazas, as the National Highways Authority of India (NHAI) is considering phasing out cash transactions nationwide.Post implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI), the highways authority said, reported PTI.The authority said it is contemplating discontinuing cash transactions at National Highway fee plazas across the country from April 1, 2026, with the aim of creating a fully digital tolling ecosystem.The proposed measure is intended to consolidate gains achieved under Electronic Toll Collection and strengthen the efficiency and reliability of fee plaza operations.According to NHAI, the transition will enhance “Ease of Commuting” by improving lane throughput, reducing congestion at toll plazas and ensuring greater consistency and transparency in toll transactions.Over the past few years, FASTag penetration has crossed 98 per cent, significantly transforming toll collection practices. At present, most toll transactions are processed electronically through RFID-enabled FASTags affixed to vehicles, enabling seamless and contactless movement across plazas.UPI payment facilities have also been operationalized at National Highway toll plazas, ensuring instant and accessible digital payment options for commuters nationwide.As per National Highway fee rules, vehicles entering a fee plaza without a valid, functional FASTag are charged twice the applicable user fee if payment is made in cash, while users opting to pay via UPI are charged 1.25 times the applicable fee.These initiatives have collectively reduced dependence on cash transactions and accelerated digitization of the tolling framework.Plaza-level assessments indicate that cash-based payments contribute to congestion, longer waiting times during peak traffic hours and transaction-related disputes.A complete transition to digital-only payments is expected to improve operational efficiency, strengthen traffic management, minimize delays and enhance user experience across more than 1,150 fee plazas on National Highways and Expressways in the country.
