Cash Payments at National Highway Toll Plazas to Be Discontinued from April 1, 2026

Cash payments at national highway toll plazas in India will be phased out from April 1, 2026, with FASTag and UPI becoming the only accepted modes, boosting efficiency.

Pune | 21 February, 2026- In a major step toward digital infrastructure modernization, cash payments at all national highway toll plazas in India will be discontinued from April 1, 2026. Commuters will be required to use FASTag or UPI-based digital payments for all toll transactions. This move is part of a broader effort to streamline toll collection, reduce congestion, and promote a cashless economy, while enhancing convenience and transparency for motorists across the country.

Currently, most toll transactions are already conducted through FASTag, an RFID-based system linked to bank accounts, or via UPI apps. The transition to fully digital payments is expected to reduce waiting times at toll plazas, cut fuel wastage caused by idling vehicles, and improve overall traffic flow. By eliminating manual cash handling, toll lanes will become faster and more efficient, particularly during peak travel hours, festivals, and long weekends.

The planned policy requires that every highway commuter maintain a valid FASTag account or have access to UPI-based payment methods. Hybrid lanes that accept both cash and digital payments are expected to be phased out gradually, ensuring motorists adapt smoothly to the new system. Authorities are also expected to conduct awareness campaigns and provide assistance to occasional highway users, tourists, and first-time commuters who may be unfamiliar with digital payment systems.

FASTag adoption has already surpassed 98% penetration, demonstrating readiness for a fully digital tolling framework. Integration with multiple UPI apps provides alternative payment options for users who may face technical issues with their FASTag or prefer mobile payments. This dual approach ensures that all commuters have a convenient method to pay tolls without cash.

Digital tolling not only improves operational efficiency but also enhances transparency, reduces disputes over payments, and lowers administrative costs associated with handling physical cash. Experts suggest that the move could also pave the way for advanced systems such as Multi-Lane Free Flow (MLFF), allowing vehicles to pass through toll plazas at highway speeds without stopping, further improving travel times.

Motorists are advised to check and update their FASTag accounts, ensure sufficient balance, and familiarise themselves with UPI alternatives well ahead of the April 1 deadline. With this transition, India takes a significant step toward modernizing highway infrastructure, reducing congestion, and encouraging a seamless, cashless travel experience for all commuters.

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