NHAI considers ending cash toll collection from April 2026

The National Highways Authority of India (NHAI) is considering a complete discontinuation of cash transactions at National Highway toll plazas across the country from April 1, 2026. If the proposal is implemented, all toll payments will be made exclusively through digital modes such as FASTag and UPI.

1. Currently, the toll is double when paying via cash and 1.25x via UPI
2. Cashless collection is expected to make toll operations more efficient and reliable

Current toll collection system

FASTag comprises over 98 percent of toll payments now

Toll collection on National Highways is largely digital, with FASTag accounting for over 98 percent of payments, according to the Ministry of Road Transport and Highways (MoRTH). Most vehicles use RFID-enabled FASTags for automatic, contactless payments at toll plazas, while UPI facilities are also available as an alternative digital mode.

Under existing rules, vehicles entering a toll plaza without a valid FASTag are charged twice the applicable user fee if they pay in cash. Those opting to pay through UPI are charged 1.25 times the applicable fee for their vehicle category.

Rationale behind phasing out cash payments

Government says it will reduce congestion and delays while improving efficiency

As per the MoRTH, assessments at toll plazas show that cash payments often lead to traffic congestion, longer queues during peak hours and disputes over transactions. The statement read, “A complete transition to digital-only modes of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall National Highway user experience.”