Planning a Highway Trip? Cash Toll Payments May Not Be Accepted Soon

Cash payments at National Highway toll plazas are likely to be discontinued from April 1, 2026. The government plans to allow toll payments only through FASTag and UPI across the country. Here are the key details for highway users.

Planning a Highway Trip? Cash Toll Payments May Not Be Accepted Soon

The Ministry of Road Transport & Highways said that Cash payments at National Highway toll plazas are likely to be discontinued from April 1, 2026. If implemented, toll payments at all National Highway fee plazas will be processed only through digital modes such as FASTag or Unified Payments Interface (UPI).

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What are the benefits of the FASTag Annual Pass?

The FASTag Annual Pass, priced at Rs 3,000, allows private vehicle owners to enjoy seamless travel across national highways. It covers up to 200 toll crossings or is valid for one year, whichever comes first. This pass is expected to reduce average toll costs per trip, simplify transactions, and minimize wait times at toll plazas. It can be activated through the Rajmarg Yatra app or NHAI website.

How will toll rates change with new payment methods?

The recent amendments introduce tiered toll rates based on payment methods. Cash payments will incur double the standard toll rate, while UPI payments will attract a 25% surcharge. This system aims to incentivize digital transactions, improving efficiency and reducing congestion at toll plazas. Such changes emphasize the government's focus on promoting digital payments in toll collection.

What happens if toll payments are missed?

Under the new rules, unpaid toll charges can affect vehicle-related services. For instance, a No Objection Certificate (NOC) for vehicle transfer will not be issued until all toll dues are cleared. Similarly, renewal of the Certificate of Fitness will be blocked. These measures aim to enforce compliance with toll payments and streamline the toll collection process.

What are the implications of the new toll rules for expressways?

From February 15, 2026, toll rates for partially operational expressways will align with national highway rates, instead of the higher expressway tariffs. This change aims to encourage usage of these stretches, reduce congestion on parallel national highways, and improve traffic flow. The amendment is expected to enhance overall efficiency for travelers on expressways.

How does the ANPR-FASTag system work?

The ANPR-FASTag system combines Automatic Number Plate Recognition technology with the existing FASTag system. It uses high-speed cameras to read vehicle number plates and RFID readers to detect FASTags. This allows for automatic toll deductions without stopping at toll plazas. If a vehicle lacks a valid FASTag, it will be flagged, and penalties may apply.

Only FASTag and UPI to Be Accepted

Under the proposed system, toll payments across National Highways and Expressways will be accepted exclusively through:
  • FASTag (RFID-based electronic toll collection)
  • UPI-based digital payments
Currently, more than 98 percent of toll transactions are carried out using FASTag, according to the government. UPI payment facilities are also operational at toll plazas across the country.

Existing Rules on Cash Payments

As per National Highway fee rules:
  • Vehicles without a valid and functional FASTag that pay in cash are charged twice the applicable toll fee.
  • Users who choose to pay via UPI are charged 1.25 times the applicable user fee .
These measures were introduced to reduce cash transactions and increase digital toll collection.

Reason for the Move

According to assessments conducted at toll plazas, cash-based payments contribute to congestion, longer waiting times during peak traffic periods and disputes related to transactions. The government stated that shifting entirely to digital payments is intended to improve traffic movement and reduce delays at more than 1,150 fee plazas on National Highways and Expressways across the country. The proposal is part of a broader plan to develop a fully digital tolling system on the National Highway network.
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