Govt may end cash toll payments from April to enable digital highway tolls

NHAI is considering a complete shift to FASTag and UPI toll payments from April to curb leakages, reduce congestion and create a fully digital, seamless tolling system across National Highways

In order to develop a fully digital National Highway tolling ecosystem, the National Highways Authority of India (NHAI) is contemplating completely discontinuing cash transactions at fee plazas across the country starting April, the road transport and highways ministry said on Friday.

 

Once the move is implemented, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI).

 

The transition will help 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, the ministry said.

 

The move is part of a series of measures being taken to reduce leakages in the toll system. In 2024, Highways Minister Nitin Gadkari had claimed that leakages took out nearly Rs 10,000 crore from the government’s toll kitty.

 

Last year, the government also reduced the scope of the additional charges to be paid if a vehicle did not have a valid FASTag but was paying via UPI instead of cash.

 

“In the past few years, over 98 per cent penetration of FASTag has significantly transformed toll collection practices in the country. At present, an overwhelming proportion of toll transactions are processed electronically through RFID-enabled FASTag affixed to vehicles, facilitating seamless and contactless movement across toll plazas,” the ministry said.

 

According to the rules, vehicles entering a fee plaza without a valid, functional FASTag are charged twice the applicable user fee if the fee payment is made in cash. National Highway users who opt to pay via UPI are charged only 1.25 times the user fee for the applicable vehicle category.

 

The ministry said this move has also accelerated the adoption of digital payments.

 

“Plaza-level assessments indicate that cash-based payments contribute to congestion, increased waiting times during peak traffic periods and transaction-related disputes,” it said.