Winning Bizness Desk

Mumbai.UPI-based payments at toll plazas will soon become more affordable as the government has revised the Fastag rules. Drivers without a valid Fastag can now pay via UPI by paying just 1.25 times the regular toll, instead of double the amount charged earlier for cash transactions. The new rule will take effect from November 15 across all national highways.

New rules to ease travel and reduce cash use

According to the new system, drivers who do not have a Fastag or face technical issues while using it can pay toll through UPI at a slightly higher rate of 1.25 times the normal toll. Those paying in cash will still need to pay double. The government aims to reduce cash transactions and simplify travel experiences for drivers. Officials said the change will not significantly impact toll revenue, as nearly 98 percent of toll collections already happen through Fastag.

Relief for drivers facing Fastag issues

Many transporters and drivers have welcomed the new rule. They said that when Fastag fails to work between state borders due to technical glitches or low balance, they are forced to pay double tolls as penalty. Now, with the UPI payment option available, they will only have to pay a smaller penalty. The change will help reduce the burden on drivers who often face difficulties on highways due to tag errors or network failures.

Government not targeting extra revenue

Officials clarified that the government’s main aim behind this new rule is not to earn from penalties but to promote cashless transactions and make the toll collection process smoother. Since a vast majority of drivers already use Fastag, the revenue impact of this change is expected to be minimal. The system will also help reduce congestion at toll booths and ensure faster vehicle movement.

Annual Fastag pass for frequent travellers

Earlier, from August 15, the government introduced an annual Fastag pass for regular travellers on national highways. The pass costs Rs 3,000 and allows users to cross toll plazas up to 200 times a year. This brings the per-toll crossing cost down to about Rs 15, which helps reduce travel expenses for frequent highway users. The initiative also aims to lower crowding at toll plazas and encourage more people to adopt digital payment systems.

Fastag available both offline and online

Drivers can buy Fastag from any toll plaza across the country or from leading banks such as Axis Bank, ICICI Bank, HDFC Bank, SBI, and Kotak Bank. The tags are also available on online platforms like Paytm, Amazon, and Google Pay. To purchase a Fastag, drivers must provide valid ID proof and the vehicle’s registration certificate. These easy purchase options are designed to ensure that every vehicle on the road can shift to digital toll payment methods without difficulty.

Summary pointers:

• Drivers without Fastag can pay toll via UPI from November 15
• UPI payment will be 1.25 times the regular toll
• Cash payment will continue to cost double
• Rule aims to promote cashless toll transactions
• Transporters welcome the move for easing penalties
• Government says revenue impact will be minimal
• Fastag available at banks, toll plazas, and online platforms