Cash Tolls to be Banned From April 1st, New Payment System to be Implemented, Government Announces

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Toll Tax Update

Toll Tax Update: If traveling on the highway, you must pay tolls when crossing toll plazas. Consequently, the government has decided to put a stop to cash tolls. On Friday, the government announced that cash payments will be discontinued at national highway toll plazas across the country from April 1st, 2026. Following this decision, the NHAI is working on the proposal.

The primary objective of this move is to implement a fully digital toll system on national highways. The government wants to make the toll collection process faster, transparent, and more reliable. The digital system will reduce payment delays and facilitate better operations.

How will toll payments be made?

If this system is implemented, all toll plazas will accept payments only through digital means. FASTag and UPI will be used. This means that drivers will be required to use these digital options instead of cash. The government considers this change extremely necessary. According to the Ministry of Road Transport and Highways, electronic toll collection has already yielded many positive results. Now, by further strengthening this system, there are plans to increase the efficiency and reliability of toll plaza operations.

What will be the benefits to travelers?

The implementation of the digital payment system will reduce dwell time at toll lanes. This will reduce congestion and increase transaction efficiency. This will make travel on highways easier and smoother, while also bringing uniformity and transparency to transactions.

How FASTag has changed the system

FASTag has reached more than 98 percent of vehicles in the country. RFID technology enables automatic toll payment, enabling seamless and contactless travel. It has significantly replaced the traditional cash toll system. According to NHAI, UPI payment has already been implemented at many toll plazas, allowing drivers to make quick and easy digital payments.

What are the rules now?

Currently, vehicles that do not have a valid and active FASTag and make cash payments are charged double the normal toll fee. Payments made using UPI are charged approximately 1.25 times the toll fee, depending on the vehicle category. The government says that fully digital payment will improve traffic management, reduce delays, and enhance the passenger experience at over 1,150 toll plazas across the country.

FASTag Annual Pass Response

The FASTag Annual Pass has also received a good response. The number of users of this facility has exceeded 5 million. Over 265.5 million transactions have been recorded in the six months since its launch. A one-time payment of ₹3,000 makes this pass valid for one year or 200 toll crossings, eliminating the need for frequent recharges.

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