Winning Bizness Desk

Mumbai. From April 1, 2026, commuters on National Highways across India may no longer be able to pay toll in cash, as the National Highways Authority of India prepares to make all toll plazas fully digital. The move, aimed at streamlining operations and plugging revenue leakages, could make FASTag and UPI the only accepted modes of payment at more than 1,150 toll plazas and expressways across the country. Officials say the transition is part of a larger push to modernise the highway network through technology-driven systems.

Digital push across toll network

The National Highways Authority of India, or NHAI, is working on a plan to completely phase out cash transactions at toll plazas. If implemented as proposed, every vehicle crossing a National Highway toll point from April 1, 2026 will have to pay through FASTag or digital platforms such as UPI.

At present, electronic toll collection systems are operational at over 1,150 toll plazas nationwide. The authority believes that moving to 100 percent digital payments will make toll operations more transparent, accurate and easier to monitor. It is also expected to strengthen data management and prevent revenue leakage.

Decision aimed at reducing congestion

According to NHAI, one of the key reasons behind the decision is to ease traffic congestion at toll plazas. Cash payments often slow down vehicle movement, particularly during peak hours, leading to long queues and frequent disputes over change.

Officials point out that:

• Cash handling increases transaction time per vehicle
• Long queues are common during rush hours
• Disputes over change often create tension at booths
• Manual processes raise the risk of accounting errors

Making digital payments mandatory is expected to significantly cut waiting time and ensure smoother flow of traffic.

FASTag coverage reaches 98 percent vehicles

The transition is also being backed by the rapid adoption of FASTag across the country. As per available data, more than 98 percent of vehicles in India are already equipped with FASTag.

Under existing National Highways fee rules:

• A vehicle entering a FASTag lane without an active tag and paying in cash is charged double the toll
• A user paying through UPI is required to pay 1.25 times the applicable toll rate

These provisions are meant to discourage non-digital payments and push motorists towards seamless electronic modes.

System overhaul at over 1,150 plazas

The proposed change will impact more than 1,150 toll plazas and expressways under the National Highways network. NHAI officials maintain that a fully digital ecosystem will allow real-time tracking of transactions, improved auditing and better enforcement of toll norms.

The authority views the reform as part of the government’s broader objective to integrate technology into infrastructure management. By eliminating cash, officials expect greater operational efficiency, stronger revenue protection and a highway system that functions with minimal human intervention and maximum transparency.