No More Cash at Toll Plazas? NHAI Plans 100% Digital Toll Payment; Check Full Timeline
Business
The National Highways Authority of India (NHAI) is planning a major change in how people pay tolls on highways. From April 1, 2026, cash payments at national highway toll plazas may be completely stopped. Instead, all toll payments could be made only through FASTag or UPI, making the system fully digital across India, which will further improve traffic flow and reduce long waiting times at toll gates.
Why Is NHAI Ending Cash Payments?
Cash transactions at toll plazas often cause heavy traffic, especially during peak hours and long weekends. Vehicles slow down, queues become longer, and arguments sometimes happen due to change or payment disputes.
India has more than 1,150 toll plazas, and handling cash at each location takes time. Since over 98% of vehicles already use FASTag, NHAI believes the country is ready to move towards a completely cashless toll collection system.
If the plan is officially approved, toll plazas on national highways will no longer accept cash payments. All drivers will need to pay digitally using FASTag or UPI.
There will be no separate cash lanes. Vehicles without digital payment options may not be allowed smooth entry, which means commuters must prepare in advance before the rule comes into effect.
FASTag is an electronic toll collection system that uses radio-frequency identification (RFID) technology. It is linked to your bank account or wallet, and when your vehicle passes through a toll gate, the amount is automatically deducted. FASTag has already become mandatory for most vehicles in India, and this new rule will make it even more important.
How Will This Affect Daily Commuters?
For regular highway users, this change could be beneficial. Digital toll payments mean faster movement, shorter queues, and smoother travel. However, people who still rely on cash must ensure their FASTag is active and recharged. UPI payment apps may also become an option at toll plazas. Without digital payment methods, travellers may face inconvenience once cash is discontinued.
The proposed rule will apply across India, including highways in Karnataka. So commuters travelling from Bengaluru to cities like Mysuru, Chennai, Hyderabad or Tumakuru via national highways will also have to follow the digital-only toll payment system.This could especially help reduce congestion at busy toll plazas near Bengaluru, where traffic is usually heavy.