The National Highways Authority of India (NHAI) will prohibit cash payments at toll plazas nationwide starting April 1, 2026. Drivers must use digital options like FASTag or Unified Payments Interface (UPI) for all toll charges. This move accelerates the transition to electronic toll collection (ETC), addressing congestion and disputes linked to cash handling.
Eliminating Cash for Smoother Highways
The digital-only system targets improved lane capacity and reduced peak-hour delays across more than 1,150 toll plazas on national highways and expressways. Officials highlight cash transactions as the primary source of arguments and extended wait times. FASTag and UPI ensure transparency and seamless experiences for all users.
98% FASTag Adoption Drives Change
With FASTag penetration exceeding 98%, most vehicles now pass tolls contactlessly via RFID scanners. UPI serves as a backup for low FASTag balances, providing instant digital payments without stopping.
Current Penalties Pave the Way
Existing rules already penalize non-digital use: vehicles entering FASTag lanes but paying cash face double (2x) the standard fee. UPI users currently pay 1.25 times the toll. The 2026 policy eliminates cash counters entirely.
Key Benefits of Cashless Tolls
Internal NHAI assessments project significant gains:
- Shorter wait times by removing 30- to 60-second cash delays per vehicle.
- Enhanced traffic flow through data-driven controls on high-volume routes.
- Lower operational costs from reduced cash handling and security needs at remote sites.
This shift promises efficient, frictionless highway travel for millions of commuters.
