New Delhi: The Centre on Friday said the National Highways Authority of India (NHAI) is considering discontinuing cash payments at National Highway toll plazas across the country from April 1, 2026.

If implemented, all National Highway toll payments will be processed only through digital modes, including FASTag and Unified Payments Interface (UPI), paving the way for a fully digital toll collection system.

According to the Ministry of Road Transport and Highways, the move aims to consolidate gains made under Electronic Toll Collection (ETC) and improve operational efficiency at toll plazas.

The transition is expected to enhance “ease of commuting” by improving lane throughput, reducing congestion at toll plazas and ensuring greater transparency in toll transactions.

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FASTag penetration above 98%

FASTag penetration has crossed 98 per cent, significantly transforming toll collection practices nationwide. Most transactions are now processed electronically through RFID-enabled FASTags affixed to vehicles, enabling seamless and contactless movement across fee plazas.

The NHAI said UPI payment facilities have also been enabled at National Highway toll plazas, offering commuters an additional instant digital payment option.

At present, vehicles entering a toll plaza without a valid FASTag are charged double the applicable user fee if payment is made in cash. Motorists opting to pay via UPI are charged 1.25 times the applicable fee for their vehicle category.

The government said a complete shift to digital-only toll payment on National Highways will strengthen traffic management, reduce delays and improve the overall commuter experience at more than 1,150 toll plazas on National Highways and expressways.

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FASTag Annual Pass crosses 50 lakh users

Meanwhile, the FASTag Annual Pass has crossed 50 lakh users within six months of its launch, recording over 26.55 crore transactions.

The Annual Pass allows users to avoid frequent recharges by making a one-time payment of ₹3,000, valid for one year or up to 200 toll plaza crossings.

The proposed move to end cash payments marks a major step towards a fully digital National Highway toll ecosystem, reinforcing the government’s push for cashless and technology-driven infrastructure services.

IANS