Starting on April 1, 2026, the National Highways Authority of India (NHAI) may stop accepting cash payments at toll plazas and solely accept payments made using FASTag or the Unified Payments Interface (UPI).
The goal of the proposed proposal is to boost the effectiveness and dependability of National Highway charge plaza operations while combining the improvements made in Electronic Toll Collection.
By increasing lane throughput, decreasing traffic at charge plazas, and introducing more uniformity and transparency in toll transactions, the change will contribute to the improvement of “Ease of Commuting” for users of the National Highway.
FASTag’s above 98 percent penetration rate over the last few years has drastically changed the nation’s toll collection methods.
RFID-enabled FASTags attached to cars already handle the vast majority of toll transactions electronically, allowing for smooth and frictionless travel across toll plazas.
Vehicles entering a fee plaza without a valid, functional FASTag are subject to double the corresponding user fee, provided that the fee is paid in cash, in accordance with National Highway fee regulations.
On the other hand, National Highway users who want to pay with UPI only pay 1.25 times the user fee for the relevant vehicle type.
Together, these efforts have made progress toward the goals of automating the tolling system and lowering reliance on cash transactions.
Cash-based payments are linked to traffic jams, longer wait times during rush hour, and conflicts over transactions, according to plaza-level assessments.
At more than 1,150 charge plazas on various National Highways and Expressways across the nation, a full switch to digital only payment methods would boost operational effectiveness, increase traffic management, reduce delays, and improve the overall National Highway user experience.
The initiative is aligned with the broader NHAI objective of developing a technology-driven, high-efficiency National Highway network that delivers faster, seamless services to National Highway users across the country.
What is Fastag?
FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments
directly while the vehicle is in motion.
FASTag (RFID Tag) is affixed on the windscreen of the vehicle and enables a customer to make the toll payments directly from the account which is linked to FASTag.
FASTag is operational at over 750 toll plazas, including all NH toll plazas and over 100 SH toll plazas in India.
What are the benefits of Fastag?
A. For Road Users
- Near non-stop motion through toll plazas
- Convenience for cashless payment of toll fee
- Less traffic congestion and reduced commute times
- Toll statements which can be mailed or made available online
- Near non-stop motion through toll plazas
- Convenience for cashless payment of toll fee
- Less traffic congestion and reduced commute times
B. For Toll Operator
- Lower operating costs
- Better audit control through centralized user accounts
- Improved capacity without being required to build more infrastructure
C. For Government
- Savings on fuel and reduction of emissions from idling and repeated stops at toll plazas.
- Improves transparency of toll transactions
Is FASTag mandatory for all vehicles in India?
Yes. As per amendments in the CMVR 1989 by the Ministry of Road Transport & Highways, FASTag is
mandatory for all class M & N vehicles (four wheelers and above, carrying goods and/or passengers)
Who is implementing FASTag program?
FASTag is a flagship programme of the Ministry of Road Transport and Highways & NHAI. Indian Highways
Management Company Limited (IHMCL), a company promoted by NHAI has been mandated to implement
FASTag programme in India.
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National Payments Corporation of India has been engaged to provide Clearing & Settlement House (CCH)
services for this FASTag Programme.
Currently 26 banks have been certified by IHMCL for issuance of FASTag in India and 12 banks have been certified to carry out acquiring services at toll plazas.
