Government Plans to Eliminate Cash Payments on National Highways by April 1, 2026

New Delhi, February 20: The government announced on Friday that the National Highways Authority of India (NHAI) is considering a complete ban on cash transactions at toll plazas across the country starting April 1, 2026.

This initiative aims to develop a fully digital tolling system on national highways. Once implemented, all toll payments will be made exclusively through digital means, utilizing Fastag or the Unified Payments Interface (UPI).

According to the Ministry of Road Transport and Highways, this proposal is designed to enhance the achievements gained from electronic toll collection and improve the efficiency and reliability of toll plaza operations.

An official statement indicated that this change will enhance the ‘ease of commuting’ for national highway users. It is expected to increase lane capacity, reduce congestion at toll plazas, and bring transparency to toll transactions.

The reach of Fastag in the country has surpassed 98%, leading to a significant transformation in the toll collection system. Most toll transactions are now conducted electronically via RFID-based Fastag, allowing vehicles to pass through toll plazas without interruption and in a contactless manner.

NHAI has also introduced UPI payment options at national highway toll plazas, providing travelers with immediate and convenient digital payment solutions.

Currently, if a vehicle enters a toll plaza without a valid and active Fastag and opts for cash payment, it incurs a fee that is double the standard charge. In contrast, users who pay via UPI are charged 1.25 times the fee based on their vehicle category.

The government asserts that adopting a purely digital payment system will enhance operational efficiency, improve traffic management, reduce delays, and elevate the overall experience for travelers at over 1,150 toll plazas nationwide.

Meanwhile, the number of annual pass users for Fastag has exceeded 5 million. Within six months of its launch, over 265.5 million transactions have been recorded. This annual pass is valid for one year or up to 200 toll crossings with a one-time payment of ₹3,000, eliminating the need for frequent recharges.

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