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Cashless Toll Plazas From April 1? Govt Plans FASTag & UPI-Only Payments
The Union Ministry of Road Transport and Highways (MoRTH) plans to remove cash payments across all National Highway toll plazas and mandate FASTag or UPI-based digital payments from April 1, 2026. This will significantly reduce congestion and fuel waste at national toll plazas.
FASTag & UPI Payments Mandatory in Toll Plazas
Highway toll plazas in India currently face a major challenge, where travellers are often forced to wait in long queues despite FASTag being mandatory on most vehicles. These delays occur mainly due to payment-related issues, network problems, and a section of drivers still keep regular cash for toll payments.
Cash payments not only slow down traffic flow but also create inconvenience for other travellers. Toll booth operators are often required to manage cash and provide change, which increases transaction time, worsens congestion, and leads to unnecessary fuel wastage. To address these issues, the government plans to eliminate cash payments at toll plazas and transition to a fully digital system using FASTag or UPI.
This move is expected to significantly reduce congestion at toll plazas, cut waiting times, and improve overall traffic efficiency. Digital payments will also bring greater transparency into the toll collection system by minimising corruption and reducing the chances of false or unaccounted transactions.
FASTag already enables automatic toll deduction directly from a linked bank account as the vehicle passes through the plaza. The UPI payments will allow quick and seamless transactions without the hassle of handling cash.
In addition to this, the government is also planning to introduce AI-based multi-lane free-flow (MLFF) toll plazas, where vehicles can pass through toll points without stopping. High-speed, high-resolution cameras will capture vehicle number plates, and toll charges will be automatically deducted from the linked bank account.
As India moves towards barrierless toll plazas, this marks the final step in retiring the decades-old cash-based collection system. This transformation ensures highway travel no longer feels frustrating due to long queues, allowing commuters to reach their destinations faster and more efficiently.
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