New rules may be implemented on national highways from April 1, allowing vehicles to proceed using UPI or FASTag..

If you travel on national highways in your car and pay tolls in cash, this system could end as of April 1, 2026. The central government may ban cash payments. The Ministry of Road Transport and Highways is considering completely eliminating cash transactions at all national highway toll plazas across the country from April 1, 2026.

Instead of cash, toll will be collected through UPI or FASTag, allowing your vehicle to proceed. This is currently under consideration; the government will announce the final decision.

Digital Payments at Toll Plazas
This means that once implemented, all toll payments will be accepted only through digital methods, specifically FASTag and Unified Payments Interface (UPI).

A press release stated that this proposed move aims to further strengthen the gains made in electronic toll collection and enhance the efficiency and reliability of national highway fee plaza operations.

NHAI stated in a release that over the past few years, FASTag penetration of over 98% has significantly transformed toll collection practices in the country.

Currently, a large portion of toll transactions is processed electronically through RFID-enabled FASTags installed on vehicles, allowing seamless and contactless movement at toll plazas.

The UPI facility was also launched at the National Highway toll plazas
NHAI stated in a press release that the UPI payment facility has been launched at National Highway toll plazas to provide quick and convenient digital payment options to national highway users across the country.

Cash attracts higher fees.
As per regulations, if the fee is paid in cash, double the user fee applicable to a functional FASTag is charged. However, national highway users who choose to pay using UPI are charged only 1.25 times the user fee for the applicable vehicle category. These efforts together have furthered the objective of reducing dependency on cash transactions and digitizing the tolling framework.

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