NHAI Proposes to End Cash Payments at Toll Plazas: Only FASTag and UPI to be Accepted

The National Highways Authority of India, under the Ministry of Road Transport & Highways, has proposed to end cash payments at toll collection points across India beginning from April 1 this year. Drivers passing through toll plazas will need to have a functioning FASTag, or will have to pay the toll amount using cashless methods, if the proposal is accepted and put into practice. 

The move would be a new escalation in the NHAI’s drive to discourage cash usage. In October 2025, new rules went into effect doubling the toll amount if cash is used, whereas UPI payments are currently levied at 1.25X the toll amount, in order to encourage FASTag adoption. The agency says cashless transactions help reduce traffic congestion and slowdowns at toll booths, eliminate disputes, and make the toll collection system more transparent and consistent. 

According to the agency’s latest circular, the RFID-based FASTag system has now achieved 98 percent penetration among highway users, accounting for an “overwhelming proportion” of toll transactions. UPI payments infrastructure has now been established at over 1,150 national highway and expressway toll collection points.

The MoRTH is yet to announce details of its proposed satellite-based toll collection system, which has been mooted in the past and will allow for toll collection based on exact distances travelled by each individual car. However, it has conducted experiments with automatic number plate recognition technology, allowing cars to drive through toll collection points without stopping for RFID-based FASTag sensors to register their presence.

NHAI rolled out its FASTag annual pass on Independence Day last year, promising substantial savings for regular highway and expressway users. It announced earlier this month that over 50 lakh people have purchased an annual pass in its first six months. At some toll plazas, over 50 percent of crossings are now made by annual pass holders. Priced at ₹3,000, the annual pass allows up to 200 toll crossings and is valid for one year. Onlynon-commercial passenger vehicles are eligible.

In late 2025, the Reserve Bank of India amended its rules to allow automatic FASTag wallet top-ups when the owner's balance falls below a certain amount. Electric vehicles are completely or partially exempt from toll payments on many national highways and expressways in India. In addition, FASTag could soon be used to make payments for parking, EV charging, and various vehicle-related services.