No FASTag? Pay Double Toll if Using Cash, Only 25% Extra For UPI From November 15

The Ministry of Road Transport and Highways has rejigged rules for toll collection on national highways, potentially bringing relief to non-FASTag users. The changes are designed to encourage the use of cashless payments for those who still cannot or choose not to use the FASTag automatic payments system. This also significantly reduces the penalty for those who do use FASTag regularly but have inadvertently allowed it to lapse or do not have adequate funds in their wallets.

Under current rules, drivers without a valid FASTag have to pay double the toll amount regardless of payment instrument. Now, with the newly amended National Highways Fee (Determination of Rates and Collection) Rules, 2008, the 200 percent penalty will only apply to cash payments. UPI transactions will attract only a 25 percent surcharge. The amended rule will go into effect on November 15.

According to the ministry’s official statement, the move will improve transparency, make commutes easier, and reduce congestion at toll collection plazas. FASTag is currently supported by 38 banks in India, with 37.07 crore transactions amounting to ₹6,661 crore processed in August 2025.

India’s UPI digital payments infrastructure has been adopted rapidly across the country. The system handled over 20 billion transactions, totalling more than ₹24.85 lakh crore in August 2025 alone, according to the National Payments Corporation of India, which administers it. Late last year, Reserve Bank of India rules were amended to allow automatic FASTag wallet top-ups when the owner's balance drops below a defined threshold.

The Ministry had introduced a new FASTag annual pass on August 15 this year, priced at ₹3,000 for up to 200 toll crossings within a year for non-commercial passenger vehicles. The offering has proven to be wildly popular, with over 5 lakh passes sold in the first four days. Electric vehicle owners are also 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.

Union Minister of Road Transport and Highways Nitin Gadkari has also outlined plans for a satellite-based toll collection system that could make payments quicker and replace flat toll rates with a per-kilometre billing system based on how far each car travels. While there is no set date for such a system to roll out, the ministry has trialled automatic number plate recognition technology which allows cars to drive straight through toll collection points rather than pausing for the current RFID-based FASTag sensors to work.