THEBUSINESSBYTES BUREAU
NEW DELHI, FEBRUARY 20, 2026
India’s National Highway network is poised for a major digital leap, with
cash payments at fee plazas likely to be completely discontinued from April 1,
2026, as the National Highways Authority of India (NHAI) moves toward a fully
technology-driven toll collection ecosystem. Once implemented, all user fee
transactions across more than 1,150 toll plazas on National Highways and
Expressways will be processed exclusively through FASTag or Unified Payments
Interface (UPI), marking a decisive shift toward seamless, contactless
mobility.
The proposed transition is designed to consolidate the gains of
Electronic Toll Collection, which has already achieved over 98 percent FASTag
penetration nationwide. RFID-enabled FASTags have transformed toll operations
by enabling automatic deduction of user fees without stopping vehicles,
significantly improving lane throughput and reducing congestion. The addition
of UPI as an instant digital payment option has further broadened accessibility
for commuters who may not have an active FASTag balance.
According to existing National Highway fee rules, vehicles entering a
toll plaza without a valid and functional FASTag and opting to pay in cash are
charged double the applicable user fee, while UPI payments attract only 1.25
times the prescribed toll. These measures have steadily discouraged cash usage
and accelerated digital adoption, paving the way for the proposed cashless
regime.
Plaza-level assessments have consistently shown that cash transactions are a major contributor to traffic bottlenecks, longer waiting times during peak hours and disputes over fee payments. Eliminating cash handling is expected to streamline operations, improve traffic management, minimise delays and bring greater transparency and consistency to toll transactions.
The move aligns with NHAI’s broader vision of building a high-efficiency, technology-led National Highway system that enhances ease of commuting for users. By ensuring faster vehicle movement, reducing human interface and strengthening operational reliability, the digital-only tolling framework is set to redefine the highway travel experience across the country while reinforcing India’s push toward a cashless economy.
