New Delhi: A new rule is set to come into effect at toll plazas across India, marking a major shift toward fully digital highway payments. Cash transactions at national highway toll plazas will soon be discontinued, according to an official notification issued by the Ministry of Road Transport and Highways.
As reported by The Times of India, the government has announced that starting April 10, toll tax payments on national highways will no longer be accepted in cash. The move is being viewed as a significant step toward promoting digital payments and implementing a completely electronic toll collection system nationwide.
Under the new rules, motorists who do not have a valid FASTag but choose to pay toll charges through the Unified Payments Interface (UPI) will be required to pay higher fees. Such payments will attract a charge 1.25 times higher than the regular toll amount, effectively adding a 25% penalty.
While this additional charge may appear small initially, it could significantly increase travel costs during long-distance journeys. The policy is designed to discourage non-compliance and last-minute payment methods, encouraging drivers to install and maintain active FASTags instead of relying on alternative payment options.
Officials from the National Highways Authority of India (NHAI) stated that the primary objective of the move is to improve efficiency at toll plazas. Long queues at toll booths often lead to traffic congestion, especially during peak hours. Even minor delays per vehicle can result in traffic jams stretching several kilometers.
Vehicles equipped with FASTag can pass through toll plazas without stopping, as toll charges are automatically deducted electronically, reducing transaction time and improving traffic flow.
The transition also brings environmental benefits. Reduced stoppage time at toll booths helps lower fuel consumption and vehicle emissions, particularly on busy highway routes.
For most highway users, the change is unlikely to cause major disruption, as FASTag adoption has already increased significantly across India. However, drivers who still rely on cash payments, travel infrequently, or maintain inactive FASTags will need to adapt quickly to the new system.
