Cash May Hit Exit Lane With India’s National Highways To Go Fully Digital From April 1

Last Updated:February 20, 2026, 22:19 IST

The government says it is contemplating completely discontinuing cash transactions at the national highway fee plazas across the country from April 1

From next financial year, starting April 1, the national highways across India may discontinue any cash transactions, leaving UPI payment as the only option in case of FASTag failure.

The Ministry of Road Transport and Highways on Friday said that the National Highways Authority of India (NHAI) is contemplating completely discontinuing cash transactions at the national highway fee plazas across the country from April 1 to develop a fully digital national highway tolling ecosystem.

“Post implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI). The proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of National Highway fee plaza operations," an official statement reads.

As per a plaza-level assessment, the ministry said that cash-based payments contribute to congestion, increased waiting times during peak traffic periods, and transaction-related disputes.

“A complete transition to digital only mode of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall National Highway user experience at over 1,150 fee plazas on various National Highways and Expressways in the country," it added.

In the longer run, the transition will help to enhance “ease of commuting" for national highway users by improving lane throughput, reducing congestion at fee plazas, and bringing greater consistency and transparency in toll transactions.

At present, over 98 per cent penetration of FASTag has been achieved, which has significantly transformed toll collection practices in the country, including checking revenue leakages.

The average daily toll collection in India has increased by about four times in the last decade—from Rs 48.66 crore per day in 2015–16 to Rs 183.07 crore per day in 2025–26. This financial year, between April 1 and December 31, a total of Rs 50,345.10 crore was collected as toll.

A major share of this, close to 98%, are processed electronically through RFID-enabled FASTag affixed to vehicles.

In addition, UPI payment facilities have been operationalised at the national highway toll plazas, ensuring availability of instant and accessible digital payment options for national highway commuters nationwide.

As per national highway fee rules, vehicles entering a toll plaza without a valid, functional FASTag are charged twice the applicable user fee if the fee payment is made in cash. In contrast, national highway users who opt to pay via UPI are charged only 1.25 times the user fee for the applicable vehicle category.

“These initiatives have collectively advanced the objective of reducing dependency on cash transactions and digitising the tolling framework," the ministry said.

The initiative is aligned with the broader NHAI objective of developing a technology-driven, high-efficiency national highway network that delivers faster, seamless services to national highway users across the country, it added.

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