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NHAI Toll Rules 2026: Cash Payments to End on Highways from April 1

New Toll Tax System

Vikram Singh

February 21, 2026 at 11:38 AM IST · 2 min read

National Highway Toll New Rules 2026: If you frequently travel on national highways, this news may shock you. The Indian government is preparing to completely eliminate cash transactions at all toll plazas across the country from April 1, 2026. The National Highway Authority of India (NHAI) aims to make the entire toll collection process 100% digital.

After the new rules come into effect, toll payments will only be possible through FASTag, UPI, or other online means. This revolutionary move by the government aims to eliminate long traffic jams on highways, save fuel, and bring transparency to toll collection. Now, traveling on highways without a digital wallet will be nearly impossible.

The Era of Cash at Toll Plazas is Over

Toll Tax Update

According to the latest data from the Ministry of Road Transport, the share of cash payments on highways has now shrunk to just around 1%. The introduction of UPI payments has led to a significant decline in cash transactions in the last few months.

According to current rules, if your vehicle doesn’t have a valid Fastag, you’re charged double the toll, while payments made through UPI are charged up to 1.25 times the toll tax, depending on the vehicle category. However, from April 2026, the government will completely close this “cash window,” meaning that toll booth staff will no longer accept notes or change.

Overloading Penalties and Cash Transactions

A major problem at toll plazas has been the penalties for overloading trucks and heavy vehicles, which until now have mostly been paid in cash. The government is now preparing a proposal to make overloading fines completely cashless. This will ensure more accurate fine calculations and eliminate the possibility of corruption by reducing human intervention. NHAI believes this move will significantly improve the efficiency and reliability of toll operations, bringing uniformity to the entire system.

Toll Tax New Rules

Barrier-less Tolling

The government’s next big vision is to make “barrier-less tolling” a reality, meaning that in the future, you won’t see toll booths or metal barriers on highways. High-tech cameras and sensors will deduct money from your account at the speed your vehicle is traveling.

Laying the foundation for cashless payments is a prerequisite for implementing this modern system in India, similar to those in developed countries. The complete elimination of cash from April 1, 2026, is a decisive step in this direction, saving the country ₹87,000 crore in fuel and time annually.

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