NHAI Plans To Scrap Cash Payment At Toll Plazas; Only UPI And FASTag Payments Allowed

The National Highways Authority of India (NHAI) has announced plans to move towards a completely cashless tolling system across the country. Beginning April 1, 2026, commuters using National Highway toll plazas may no longer be able to pay with cash. Instead, transactions will be processed exclusively through digital platforms, specifically FASTag and the Unified Payments Interface (UPI).

According to the authority, this proposal is part of a broader effort to create a fully digital tolling ecosystem. By eliminating cash payments, NHAI aims to streamline operations at toll plazas, reduce congestion, and improve transparency in fee collection. 

The move builds on the success of electronic tolling systems already in place, where FASTag has achieved widespread adoption. Officials highlight that more than 98 percent of toll transactions are currently processed electronically, demonstrating the effectiveness of RFID-enabled FASTag technology in ensuring seamless vehicle movement.

The introduction of UPI as an additional payment option further strengthens the digital framework. With UPI now operational at toll plazas, commuters have access to instant, secure, and widely accepted payment methods. 

This dual system of FASTag and UPI is expected to enhance convenience, improve lane throughput, and provide greater consistency in toll transactions. NHAI believes the transition will significantly contribute to the "Ease of Commuting" initiative, ensuring smoother travel experiences for highway users.

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Current rules already discourage cash payments. Vehicles entering a toll plaza without a valid FASTag are charged double the applicable fee if they pay in cash. Meanwhile, those opting for UPI payments are charged 1.25 times the standard toll rate. These measures are designed to encourage digital adoption and reduce reliance on manual transactions.

However, NHAI has also cautioned the public about fraudulent activities targeting FASTag users. A recent advisory issued through the Indian Cyber Crime Coordination Centre under the Ministry of Home Affairs warned of scams involving fake FASTag portals.

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Fraudsters have been creating websites that closely mimic official government pages, often promoted through paid advertisements and search engine optimization. These sites trick users into entering personal details such as mobile numbers, vehicle registration data, and payment credentials. While the payment gateways appear authentic, funds are diverted to accounts controlled by criminals.