The National Highways Authority of India said on Friday that it is considering stopping cash transactions from April 1, 2026, at toll plazas across India.
Already, 98% of tolls are collected through FASTag, and the rest is collected through UPI-based digital and cash payments.
While UPI payments attract 1.25 times the normal fee, cash transactions cost twice the normal amount.
“The proposed measure aims to consolidate the gains made in e-toll collection and enhance the efficiency and reliability of operations of national highway toll plazas. This shift will help enhance ‘ease of commuting’ for users of national highways by improving lane productivity, reducing congestion at toll plazas, and bringing greater consistency and transparency in toll transactions,” NHAI said in a statement.
She added that evaluations at the plaza level indicate that cash payments contribute to congestion, increased waiting times during peak traffic periods, and transaction-related disputes.
Earlier, NHAI said the adoption of FASTag has led to a reduction in the average waiting time at toll plazas from 734 seconds to 47 seconds during the financial year 2022-23.
To further improve highway travel, NHAI has initiated a barrier-free toll collection system and is expected to bring all toll plazas under a barrier-free system by the end of 2026.
