NHAI might discontinue cash transactions at all toll plazas from April 1, 2026

The highway authority said it will help enhance ease of commuting, reduce congestion and bring transparency to toll transactions

The National Highway Authority of India on Friday said that it is considering discontinuing cash transactions from April 1, 2026, at toll plazas across India.

98% of the toll fee is collected through FASTag, and the remaining is collected through UPI-based digital payments and cash.

Already, 98% of the toll fee is collected through FASTag, and the remaining is collected through UPI-based digital payments and cash.

While UPI payments attract 1.25 times the normal charge, cash transactions cost twice the normal amount.

In a statement, NHAI said, “The proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of National Highway fee plaza operations. The transition will help enhance ‘Ease of Commuting’ for National Highway users by improving lane throughput, reducing congestion at fee plazas, and bringing greater consistency and transparency to toll transactions.”

It added that plaza-level assessments indicate that cash-based payments contribute to congestion, increased waiting times during peak traffic periods, and transaction-related disputes.

Earlier, NHAI had said that FASTag adoption has resulted in the average waiting time at toll plazas going down from 734 seconds to 47 seconds during the financial year 2022-23.

To further improve highway travel, NHAI has started a barrier-free toll collection system and is expected to bring all toll plazas under the barrier-less system by the end of 2026.