India is preparing for a major change in highway travel. If you regularly drive on National Highways or Expressways, this update could directly affect you. The National Highways Authority of India is considering ending cash toll collection from April 1 2026.

At first, it sounds like just another policy shift. But once you look closely, this move can reshape how over 1150 toll plazas operate across the country. I went through the official details, user fee rules, and government statements to break this down clearly.

Why NHAI Plans to Make All National Highway Toll Payments Fully Digital from April 1 2026

The proposal under discussion suggests that from April 1 2026, toll payments at all National Highway fee plazas will be accepted only through digital modes such as FASTag and Unified Payments Interface. The idea is simple. Reduce congestion. Improve operational efficiency. Create a technology driven highway network.

Currently, toll payments on National Highways are already largely digital. According to the Ministry of Road Transport and Highways, FASTag accounts for over 98 percent of total toll transactions. That means cash usage is already minimal. So the shift toward a 100 percent digital toll collection system is being positioned as the logical next step.

Current FASTag and UPI Toll Payment Rules You Should Know

Before this complete transition, here is how the system works today:

Under existing National Highway fee rules, if a vehicle enters a toll plaza without a valid and functional FASTag and chooses to pay in cash, the driver is charged double the toll amount.

If the commuter pays via UPI, the charge is 1.25 times the applicable fee for that vehicle category.

These higher charges have already reduced dependency on cash and accelerated the shift to digital toll collection.

Over 98 Percent FASTag Penetration Across National Highway Toll Plazas

FASTag is an RFID enabled electronic toll collection system affixed to vehicle windshields. It enables contactless toll payments without stopping for manual transactions. Adoption has crossed 98 percent penetration across India. Most toll transactions are now processed electronically through FASTag lanes.

In addition, UPI facilities are operational at toll plazas nationwide, offering instant digital payment alternatives. This high penetration rate is one of the main reasons NHAI believes eliminating cash toll payments is now practical.

How Ending Cash Toll Collection Can Reduce Congestion and Waiting Time

Plaza level assessments indicate that cash based transactions still contribute to:

• Longer queues during peak hours
• Transaction related disputes
• Manual delays in processing

A complete digital only toll payment system is expected to:

• Improve lane throughput
• Reduce congestion at toll plazas
• Minimise transaction delays
• Enhance transparency in toll collection
• Improve consistency across highway networks

From an operational perspective, digital toll collection removes human handling time and reconciliation delays.

Impact on 1150 Plus National Highway and Expressway Toll Plazas in India

If implemented, this move will affect more than 1150 fee plazas across National Highways and Expressways in India.

Every commuter using National Highways will need either:

• A valid and active FASTag
• Or access to UPI for toll payments

There will be no option to pay toll in cash once the rule becomes effective.

Towards a Technology Driven and Efficient National Highway Network

NHAI states that this proposal aligns with its broader objective of building a technology driven and high efficiency National Highway network.

By eliminating cash transactions, authorities aim to improve Ease of Commuting for highway users. The goal is faster, seamless, and hassle free travel across India.

If implemented from April 1 2026, this step would mark a significant milestone in India’s transition toward fully digital infrastructure in road transport.

I was initially hesitant about the idea of removing cash completely. But when you look at the 98 percent FASTag adoption rate and existing digital dominance, it appears more like a formalization of what is already happening.

Still, the success of this system will depend on consistent FASTag functionality, reliable UPI networks, and proper grievance redressal mechanisms.

Frequently Asked Questions

1. Is NHAI stopping cash toll payments from April 1 2026?

NHAI is considering discontinuing cash payments at National Highway toll plazas from April 1 2026. If implemented, toll payments will be allowed only through FASTag and UPI.

2. What happens if I do not have a FASTag after April 1 2026?

If the rule is implemented, vehicles without a valid FASTag may not be allowed to pay cash. Digital payment through FASTag or UPI will be mandatory.

3. What are the current penalties for cash toll payment?

Currently, vehicles entering without a valid FASTag and paying in cash are charged double the applicable user fee.

4. How much extra is charged for UPI toll payments?

Commuters paying through UPI are charged 1.25 times the applicable user fee for their vehicle category under existing rules.

5. How many toll plazas will this impact?

The digital only toll system will impact over 1150 fee plazas across National Highways and Expressways in India.

6. Why is the government phasing out cash toll collection?

The government states that cash payments lead to congestion, longer waiting times, and transaction disputes. Digital toll collection improves efficiency, traffic flow, and transparency.