An exceptionally important new rule will come into effect at toll plazas starting November 15, 2025, and will directly impact your pocketbook. If your vehicle doesn’t have a valid or non-functioning FASTag, you could face a hefty fine. However, the government has announced major relief for those making digital payments (UPI). Learn what this new rule entails, how much you’ll lose by paying in cash, and how you can save immediately by using UPI.
New Fee Rules to Come into Effect November 15
The central government has made a significant amendment to the National Highway Fee (Determination and Collection of Rates) Rules, 2008, significantly changing the fee collection system at toll plazas. This amendment aims to discourage cash transactions at toll plazas and promote digital payments.
The new rule states that drivers entering a toll plaza without a valid and functioning FASTag will be charged a substantially higher fee. This rule has been introduced to strengthen the Digital India initiative in the road transport sector.
Difference in fees for cash and UPI payments
This rule will directly affect drivers whose FASTag is not working or who do not have the tag. It is extremely important to understand the difference in fees. If your FASTag is working properly, you will only have to pay the normal toll fee (1x). For example, if your toll is ₹100, you will only have to pay ₹100. However, this is where the biggest change comes in. If your FASTag is not working and you make a cash payment, you will have to pay double the fee (2x). That is, for a toll of ₹100, you will have to pay ₹200, which is a hefty penalty.
Conversely, if your FASTag is not working and you pay through UPI or any other digital means, you will not be charged double the penalty. You will only have to pay 1.25 times the normal fee. For a ₹100 toll, you will only have to pay ₹125. This makes it clear that digital payments will now receive direct relief, while cash transactions will incur higher charges.
Why did the government make this big change
According to the Ministry of Road Transport and Highways (MoRTH), the main objective of this amendment is to make the toll collection system more transparent, reduce cash transactions, and promote digital payments more widely.
The ministry believes that this extraordinary move will reduce traffic congestion and long queues at toll plazas, leading to fuel savings. Additionally, passengers will experience a faster, seamless, and smoother journey. The reduction in cash transactions will bring greater transparency to the entire toll collection system. This rule is a clear signal to all motorists that they should now fully embrace digital payments. Always keep your FASTag recharged, and if it fails, use UPI immediately to save on fines.