NHAI New Rules: The National Highways Authority of India (NHAI) is considering discontinuing cash payments at national highway toll plazas across the country from April 1, 2026, leaving digital modes such as UPI and FASTag as the only option for toll payments.

According to the news agency PTI, this move is a part of NHAI's broader goal to develop a technology-driven, high-efficiency national highway network that will offer seamless services to the national highway users across the country.

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Cash Payments To Be Discontinued At Toll Plazas From April 1?

The Ministry of Road Transport and Highways on Friday said that the National Highways Authority of India (NHAI) is considering discontinuing cash payments at national highway toll plazas across the country from April 1, aiming to create a fully digital highway tolling ecosystem.

"Post implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI). The proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of National Highway fee plaza operations," the NHAI said in a statement.

Plaza-Level Assessment Highlights Impact Of Cash Payments On National Highways

According to a plaza-level assessment, the Ministry of Road Transport and Highways highlighted that cash-based payments lead to congestion, longer waiting times during peak hours, and transaction-related disputes.

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"A complete transition to digital only mode of payment will strengthen operational efficiency, improve traffic management, minimise delays and enhance overall National Highway user experience at over 1,150 fee plazas on various National Highways and Expressways in the country," it added.

How Will Digital Payments Benefit Commuters?

In the long term, this transition will make travel on national highways smoother by improving lane throughput, reducing congestion at toll plazas, and ensuring more transparent and consistent toll transactions. At present, 98 per cent of the toll fee is collected through FASTag, while the remaining is collected through UPI-based digital payments and cash.

What Do The National Highway Fee Rules Say?

Under the national highway fee rules, vehicles without a valid, functional FASTag are charged twice the standard toll fee if the payment is made in cash. In contrast, commuters who pay via UPI are levied only 1.25 times the user fee for the applicable vehicle category.

"These initiatives have collectively advanced the objective of reducing dependency on cash transactions and digitising the tolling framework," the ministry said.

(With PTI Inputs)