Cash transactions at highway toll plazas in India have become a thing of the past. From April 10, commuters on national highways will no longer be able to pay toll charges using cash, a move officially notified by the Ministry of Road Transport and Highways. According to reports, the announcement was made through a gazette notification, signaling a move towards digital payments and a fully electronic toll collection system. At the same time, the new rule introduces higher costs for those who choose to pay through the Unified Payments Interface. Fast tagCompliance is almost inevitable for most highway users.
No Cash Toll Plaza from April 10, 2026: UPI payment without valid FASTag 1.25 times higher
From April 10, all toll payments on national highways will be fully electronic, reports PTI. This is in line with the government’s long-standing push for digital infrastructure and cashless transactions. FASTag, already widely used, becomes the default and expected payment method. This change may not feel new to regular travelers. Many toll plazas have already reduced or discouraged cash payments in the past few years. For drivers without a FASTag, the system still offers fallback. But it comes at a price.If a vehicle enters the toll plaza without a valid FASTag, payment through UPI will still be allowed. But the charge will be 1.25 times the standard toll fee. This extra 25 percent may seem small at first glance. In long-distance travel, this increases. The policy appears to be designed to discourage last-minute or non-compliant payments. This encourages users to install and maintain a working FASTag instead of relying on alternatives.
How this can help reduce toll plaza queues and fuel consumption.
Officials at the National Highways Authority of India have indicated that the move is mostly about efficiency. Long queues at toll plazas have been a constant problem. Even a small delay in each vehicle can add up to kilometers during rush hours. Vehicles equipped with FASTag can pass through toll points without stopping. The system automatically deducts fees, reducing transaction time. There is also an environmental angle, though the notification doesn’t highlight much. Reduced waiting times can mean lower fuel consumption and lower emissions, especially on busy corridors.
What does this mean for everyday commuters?
For most highway users, the transition may feel trivial. FASTag adoption is already high across India.Drivers who rely on cash, occasional passengers, or those with inactive FASTags may need to adjust quickly. The 1.25x penalty for UPI payments effectively eliminates the convenience of being out of the FASTag system.
