No Cash Payments at Toll Plazas From April 10 Across India

MoRTH mandates 100% digital tolling on National Highways; UPI payments for non-FASTag users to incur 1.25x surcharge.

The Ministry of Road Transport and Highways (MoRTH) has officially announced that cash payments at all toll plazas on National Highways will be discontinued starting April 10, 2026.

According to a recent gazette notification, the government has moved to enforce a strictly digital payment ecosystem. Commuters will now be required to use either FASTag or Unified Payment Interface (UPI) to clear their dues at the gates.

Digital transition mandated

The move marks the final phase of the government’s transition toward a cashless highway network. Sources indicated that the decision aims to eliminate human intervention and reduce congestion at tolling points.

While FASTag remains the primary mode of transaction, the new rules provide a secondary digital alternative. However, this convenience comes at a specific cost for those who have not yet switched to a functional tag.

UPI payments attract surcharge

The Ministry clarified that vehicles entering a fee plaza without a valid or functional FASTag can still opt for UPI. In such cases, the user will be charged 1.25 times the applicable fee for that vehicle category.

"If the user enters a fee plaza without a functional FASTag and opts for UPI, they shall pay 1.25 times the user fee," the notification stated. This serves as a deterrent against non-compliance with the FASTag mandate.

Stricter enforcement protocols

Failure to pay via FASTag or the premium UPI rate will lead to enforcement under Rule 14 of the National Highways Fee Rules. This could involve higher penalties or restricted access to the highway network.

Officials from the National Highways Authority of India (NHAI) noted that the 1.25x UPI charge is intended to prioritize FASTag. This ensures that the automated flow of traffic is not disrupted by manual digital processing.

Impact on daily commuters

There are currently over 1,150 fee plazas operational across various National Highways and Expressways in the country. This policy change will impact millions of daily commuters and logistics operators.

NHAI officials believe the move is essential for making highway travel smoother. Reducing the "wait-time per vehicle" is the core objective behind the latest India News Update regarding transport infrastructure.

Annual pass prices hiked

Parallel to the digital mandate, the NHAI has also revised the cost of FASTag annual passes. The prices have seen a 2.5% increase, moving from ₹3,000 to ₹3,075.

This adjustment coincides with the broader increase in vehicle ownership costs. From April 1, prices for commercial and passenger vehicles in India have risen by 2–3% due to updated regulatory standards.

Future of highway travel

The government’s push for a digital-only tolling system is expected to significantly cut fuel wastage and CO2 emissions. By removing the cash option, the ministry anticipates a 15–20% improvement in transit speeds at bottlenecks.

As the April 10 deadline approaches, the English News Portal India suggests that commuters ensure their FASTag accounts are active and adequately funded. This Public Interest Story highlights the urgent need for digital readiness among Indian motorists to avoid surcharges.

FASTag Payments Set to Expand Beyond Toll Plazas

In a major boost to digital mobility and cashless travel, the Union Ministry of Road Transport and Highways is preparing to roll out a nationwide scheme that will make FASTag payments multipurpose. After a successful six-month pilot project, FASTag will soon be used not only for toll payments but also for parking fees, petrol, EV charging, and other travel-related services.

The move is expected to significantly improve the ease of travel while reducing dependence on cash and multiple payment apps.

Why FASTag Payments Matter Right Now

With rising vehicle numbers and increasing focus on seamless digital payments, the government aims to transform FASTag into a unified travel wallet. Officials say limiting FASTag only to toll booths restricts its potential, while expanding its use can simplify everyday travel expenses.

According to ministry officials, this step will also help curb digital fraud. Since FASTag functions like a prepaid wallet linked to verified vehicle details, the risk of financial loss due to fraud is expected to reduce.

Where FASTag Can Be Used Soon

After consultations with fintech firms, banks, payment service providers, and toll operators, a consensus has been reached on expanding FASTag payments to the following services:

Toll plazas

Petrol pumps

EV charging stations

Parking facilities

Food outlets on highways

Vehicle maintenance services

City entry charges

Other travel-related facilities

This change aligns with the government’s broader push towards smart mobility and integrated digital infrastructure.

FASTag Parking Payments at New Delhi Railway Station

One of the first major implementations will be seen at New Delhi Railway Station, where parking fees will be deducted directly via FASTag. Northern Railway CPRO Himanshu Shekhar Upadhyay said a new parking policy has been prepared under the leadership of Delhi DRM Pushpendra Kumar Tripathi.

Key benefits of the new system include:

Reduced traffic congestion at entry and exit gates

Automatic fee deduction, ending disputes over overcharging

Faster drop-offs and pick-ups, with nearly 80% of vehicles expected to exit immediately

Deployment of ex-army personnel as marshals for parking and traffic management

Officials believe the discipline and training of former army personnel will also enhance passenger safety and overall security.

What’s Next in the New Policy

The tender process for the new parking management system has been completed, and a new company will take charge from December 28. As per the policy, all passenger facilities, vehicle management norms, and security standards must be implemented within one month.

Additionally, three dedicated pathways are being developed towards Ajmeri Gate to ensure smooth passenger movement, easy luggage handling, and hassle-free access to taxis, buses, and the metro.

The expansion of FASTag payments marks a significant step towards smarter, safer, and more efficient travel in India. By turning FASTag into a comprehensive digital wallet, the Road Transport Ministry is paving the way for a smoother travel experience while strengthening transparency and security in digital transactions.