National highway tolls go fully digital with FASTag, UPI payments

All user fee payments at national highway toll plazas across India are now being processed exclusively through digital modes , including FASTag and the Unified Payments Interface (UPI) , as the government formalised a cashless tolling system across the national highway network.

The Ministry of Road Transport and Highways said the system came into effect on April 10, 2026 , marking the complete phase-out of cash payments at toll plazas. The move is aimed at improving efficiency and transparency , reducing congestion, and enabling smoother traffic flow on national highways. Officials said the change also strengthens real-time monitoring of toll transactions and reduces manual handling errors.

The rollout covers more than 1,150 toll plazas across the country, making it one of the largest coordinated shifts to fully digital toll collection in India’s highway network.

Under the new system, FASTag , an RFID-based electronic toll collection mechanism linked to a prepaid or bank account, remains the primary mode of payment . The system is already widely adopted, with FASTag penetration reported at over 98 per cent , making the transition largely a formalisation of existing usage patterns rather than a sudden operational shift.

Motorists without a valid FASTag can still make payments through UPI-based digital methods , but they will be charged 1.25 times the applicable toll fee . This penalty structure is intended to encourage universal FASTag adoption; however, it has drawn criticism for imposing an additional financial burden on non-FASTag users , especially occasional highway travellers and those affected by technical issues such as faulty tags or payment failures.

Officials said earlier cash-based toll payments typically involved higher congestion and processing delays, while digital systems are expected to reduce waiting time at plazas , lower fuel wastage due to idling vehicles , and minimise transaction disputes.

However, the digital-only system has not yet been implemented in Tamil Nadu, Kerala, Assam and West Bengal , as well as the Union Territory of Puducherry , due to the Model Code of Conduct currently in force during ongoing assembly elections . The existing toll collection mechanism will continue in these regions until the election process concludes.

The government said the initiative is part of a broader effort to modernise highway infrastructure and expand cashless payment systems across India’s transport sector, positioning digital tolling as the default standard nationwide.