Cash transactions at highway toll plazas in India are about to become a thing of the past. Starting April 10, travellers on national highways will no longer be able to pay toll charges using cash, a move that has been formally notified by the Ministry of Road Transport and Highways. According to the reports, the announcement has been made through a gazette notification, signalling a stronger push towards digital payments and a fully electronic toll collection system. At the same time, the new rule introduces a higher cost for those opting to pay via Unified Payments Interface without a valid FASTag, making compliance almost unavoidable for frequent highway users.
No cash toll plazas from April 10, 2026: UPI payments 1.25 times higher without a valid FASTag
According to PTI reports, from April 10, all toll payments on national highways will move entirely to electronic modes. This aligns with the government’s long-running push for digital infrastructure and cashless transactions. FASTag, which is already widely used, becomes the default and expected mode of payment. The change might not feel entirely new to regular commuters. Many toll plazas have already reduced or discouraged cash payments over the past few years. For drivers without FASTag, the system still offers a fallback. But it comes at a cost.If a vehicle enters a toll plaza without a valid FASTag, payment through UPI will still be allowed. But the charge will be 1.25 times higher than the standard toll fee. That extra 25 percent might seem small at first glance. Over long-distance travel, it adds up. The policy appears designed to discourage last-minute or non-compliant payments. It nudges users towards installing and maintaining a working FASTag rather than relying on alternatives.
How this may help reduce toll plaza queues and fuel consumption
Officials from the National Highways Authority of India have indicated that the move is largely about efficiency. Long queues at toll plazas have been a persistent issue. Even a small delay per vehicle can build up into kilometres of congestion during peak hours. Vehicles equipped with FASTag can pass through toll points without stopping. The system automatically deducts the fee, cutting down transaction time. There is also an environmental angle, though not highlighted heavily in the notification. Reduced waiting times could mean lower fuel consumption and fewer emissions, especially on busy corridors.
What this means for everyday travellers
For most highway users, the transition might feel minor. FASTag adoption is already high across India.Drivers who rely on cash, occasional travellers, or those with inactive FASTags may need to adjust quickly. The 1.25x penalty for UPI payments effectively removes the convenience of staying outside the FASTag system.
