Cash transactions at NH fee plazas may end from April 1
Times of India
by TNNFebruary 20, 2026
AI-Generated Deep Dive Summary
Commuters on India's national highways may soon say goodbye to cash payments at toll plazas, as authorities plan to discontinue them entirely from April 1, 2024. The move aims to streamline toll collection and enhance efficiency by relying solely on digital payment methods like FASTag and UPI. Currently, drivers without a valid FASTag are charged double the applicable toll if they pay in cash, while those using UPI incur a 1.25 times charge for their vehicle category. This shift reflects India's broader push to reduce reliance on cash transactions and improve financial transparency.
The decision comes after a significant decline in cash payments—from about 2% of total toll collections when UPI was introduced in November 2023, cash usage has dropped to nearly 1%. The transition is expected to reduce congestion at toll plazas during peak hours, as digital payments are faster and less prone to disputes. However, the government is also addressing concerns over penalties for overloaded vehicles, which are often paid in cash. A proposal is under consideration to rationalize these penalties and make them cashless.
This initiative aligns with India's Digital India vision, aiming to enhance financial inclusion and technological adoption. By eliminating cash transactions, authorities hope to improve transparency and reduce transaction-related disputes. The move not only benefits commuters by making toll payments more efficient but also supports the country's broader digital transformation efforts, which are increasingly relevant in a global context.
For readers interested in global trends, this shift highlights India's commitment to modernizing its infrastructure and fostering digital payment systems. As cashless transactions gain traction worldwide, India's move reflects a broader trend toward financial digitization, with implications for economic efficiency, security, and inclusion. This transition underscores the growing importance of technology in shaping everyday life, not just in India but globally.
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Originally published on Times of India on 2/20/2026