No cash payments at highway tolls from April 1? NHAI weighs FASTag, UPI-only payments
Times of India
by TOI BUSINESS DESKFebruary 20, 2026
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Commuters on India’s National Highways may soon bid farewell to cash payments at toll plazas, as the National Highways Authority of India (NHAI) is considering a complete shift to digital payment modes by April 1, 2026. The proposed change aims to streamline toll collection and create a fully digital ecosystem, relying on FASTag or Unified Payments Interface (UPI) for all transactions. This move follows years of increasing adoption of electronic toll collection, with FASTag penetration now exceeding 98%. By eliminating cash payments, NHAI seeks to reduce congestion at toll plazas, improve lane throughput, and enhance the overall efficiency of fee plaza operations.
The transition is expected to significantly impact traffic management and user experience. Currently, vehicles without a valid FASTag are charged twice the applicable fee if payment is made in cash, while UPI users pay only 1.25 times the standard rate. This disparity reflects NHAI’s push to encourage digital payments, which have already proven effective in minimizing delays and disputes during peak hours. Cash-based transactions contribute to longer waiting times and operational inefficiencies, making a full shift to digital-only payments crucial for improving traffic flow and reducing commuter stress.
UPI payment facilities were introduced at toll plazas nationwide to ensure instant and accessible digital payment options. This initiative aligns with India’s broader push toward digitization and the creation of a cashless society. The proposed change is part of NHAI’s strategy to consolidate gains from its Electronic Toll Collection system, further enhancing the reliability and efficiency of toll transactions.
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Originally published on Times of India on 2/20/2026