NHAI plans to remove cash payments at National Highway toll plazas from April 1 this year.

New Delhi, February 20, 2026: In a major step towards making India’s national highway toll system fully digital, the National Highways Authority of India (NHAI) is considering the complete removal of cash transactions at national highway toll plazas across the country from April 1, 2026.

Once implemented, toll payments at all national highway toll plazas will be accepted exclusively through digital modes, including FASTag and Unified Payments Interface (UPI).

The proposed move aims to consolidate the progress achieved in electronic toll collection and significantly enhance the efficiency, transparency, and reliability of toll plaza operations.

NHAI is aiming to improve the digital tolling system through this implementation:

According to officials, the transition to a fully digital tolling system will improve ease of movement for highway users by increasing lane efficiency, reducing congestion at toll plazas, and ensuring greater consistency in toll transactions.

It is also expected to minimize disputes and delays associated with manual cash handling.

Over the past few years, FASTag adoption has crossed 98 percent nationwide, transforming toll collection practices across India.

RFID-enabled FASTag installed on vehicles has enabled seamless, contactless, and faster passage through toll plazas.

In addition, the introduction of UPI-based payments at NHAI toll plazas has further expanded convenient digital payment options for road users.

As per the NHAI Toll Rules, vehicles entering toll plazas without a valid and active FASTag are currently charged double the applicable user fee.

The latest move is cheaper than previous arrangements:

Meanwhile, vehicles making payments through UPI are charged 1.25 times the standard toll fee for their respective vehicle category.

These provisions are designed to discourage cash usage and accelerate the shift towards digital payments.

Plaza-level assessments conducted by NHAI indicate that cash transactions significantly contribute to congestion, especially during peak traffic hours, resulting in longer waiting times and frequent transaction-related disputes.

A complete transition to digital tolling is expected to improve traffic flow, reduce delays, and enhance the overall commuter experience at more than 1,150 toll plazas operating on national highways and expressways across the country.

The proposed initiative aligns with NHAI’s broader objective of developing a technology-driven, high-efficiency national highway network that delivers faster, seamless, and user-friendly services to highway commuters across India.

Also Read: The FASTag annual toll pass of Rs 3000 kicks off from Independence Day.

EOM.