Cash payments at National Highway fee plazas across India are likely to be discontinued from 1 April 2026, marking a significant shift in the country’s toll collection system. The move is being planned by the National Highways Authority of India (NHAI) under the supervision of the Ministry of Road Transport and Highways as part of the government’s broader push towards complete digitalisation of road infrastructure. If implemented, commuters will no longer be able to pay toll charges in cash at National Highway plazas.
Under the proposed framework, toll charges will be payable exclusively via digital methods such as FASTag and UPI FASTag, a radio-frequency identification (RFID)-based system, automatically deducts toll charges from a prepaid or linked bank account as vehicles pass through toll plazas. UPI-based QR code payment facilities may also be made available at designated lanes to ensure seamless digital transactions for occasional highway users.
The decision comes at a time when digital toll collection has already achieved widespread adoption across the country. Reports indicate that more than 95–98 percent of toll transactions on National Highways are currently conducted through FASTag. The remaining cash transactions often lead to longer queues, slower processing, and operational inefficiencies at busy toll plazas, especially during peak travel seasons.
One of the key objectives behind eliminating cash payments is to reduce congestion and waiting time at toll plazas. Digital payments significantly speed up vehicle movement, cut fuel wastage caused by idling engines, and reduce carbon emissions. Additionally, electronic transactions enhance transparency and minimise the risk of revenue leakages, ensuring better financial accountability in toll operations.
For commuters and commercial fleet operators, the transition is expected to bring smoother travel experiences and improved record-keeping. Businesses, in particular, may benefit from easier tracking and reconciliation of toll expenses through digital transaction histories. However, authorities may need to ensure adequate awareness campaigns and technical support for rural or less tech-savvy users to avoid inconvenience during the shift.
If the plan is formally notified and implemented from 1 April 2026, it will mark a major milestone in India’s journey toward a fully cashless tolling ecosystem. The move aligns with the government’s broader digital governance initiatives and reflects the evolving landscape of smart transportation infrastructure across the country.
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