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To transform the toll collection, the National Highways Authority of India (NHAI) would potentially abolish the cash payment in all national highway toll plazas by the beginning of April 2026. In a more recent press release, NHAI stated that it is considering switching to a fully digital tolling ecosystem with payments being accepted using FASTag (RFID-based electronic collection) or Unified Payments Interface (UPI) only.

This action is based on the success of the FASTag that is already covering approximately 98 percent of all the tolls in the nation. Now, vehicles that have no acceptable FASTag will be subject to penalties, two times the cost of the cash transactions and 1.25 times the cost of the UPI payment, discouraging the use of cash. Through the eradication of cash lanes in more than 1150 toll plazas on the national highways and expressways, NHAI seeks to increase the lane throughput, reduce congestion during peak times, shorten the time spent waiting, decrease the number of disputes related to transactions, and enhance general transparency in the collections.

The project is better matched with the overall agenda of a cashless economy and Digital India in India. Passengers of trains and roads will have no trouble stopping to make or take cash, and their travel will be made faster, smoother, and hassle-free. It, however, mandates all users to make sure that their FASTag is active, loaded, and connected correctly using the My FASTag app/bank portals. Where UPI offers a good fallback at each lane, FASTag is not available or is having problems.

Although the proposal is being discussed and may have some adjustments to the implementation of it, the officials note that it will significantly improve user experience and efficiency. Drivers can be recommended to prepare ahead willingly, i.e., obtaining FASTags or topping them off prior to the end of April 1st, 2026, failure to do which may result in motorists being destabilized or fined. This would be a significant breakthrough in ensuring that the India highways are indeed modern and frictionless.