NHAI May Discontinue Cash Toll Payments Across Highways from April 2026

The National Highways Authority of India (NHAI) is considering ending cash payments at toll plazas from 1 April 2026, as per news reports. If implemented, toll charges across National Highways would be accepted only through digital modes such as FASTag and the Unified Payments Interface (UPI). 

The proposal is for a fully digital toll collection system. All user fee transactions at National Highway fee plazas will be processed electronically. The authority has indicated that this could help standardise operations and reduce manual intervention at toll booths. 

Current Digital Penetration 

Electronic Toll Collection has expanded over the past few years. FASTag penetration has crossed 98%, with most vehicles now equipped with RFID-enabled tags. These tags allow automatic deduction of toll charges as vehicles pass through designated lanes. 

In addition to FASTag, UPI facilities have been introduced at toll plazas, providing another digital payment option. A significant share of toll transactions is already processed electronically. 

Existing Fee Rules 

Under current National Highway fee rules, vehicles without a valid and functional FASTag are required to pay twice the applicable user fee if paying in cash. Motorists who choose to pay via UPI are charged 1.25 times the toll rate for their vehicle category. 

These provisions were introduced to discourage cash payments and encourage adoption of digital systems. 

Operational Considerations 

According to assessments at the plaza level, cash payments contribute to longer waiting times, congestion, and transaction-related disputes, particularly during peak hours. Authorities expect that a complete shift to digital payments could improve lane throughput and reduce delays. 

The proposed change would apply to more than 1,150 fee plazas across National Highways and Expressways in the country. 

Read More: Himachal Pradesh Toll Tax Hiked: Complete List of Updated Charges for Visitors from April 1! 

Conclusion 

If approved, this would formalise the transition to a digital-only tolling framework from April 2026. The decision is to streamline toll collection and improve traffic management across the highway network. 

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