NHAI to Discontinue Cash Transactions at Toll Plazas
The proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of NH fee (toll) plaza operations
NEW DELHI: The National Highways Authority of India (NHAI) plans to discontinue cash transactions at toll plazas across the country from April 1 as part of efforts to fully digitise the national highway tolling system.
The ministry of road transport and highways said that following implementation, all toll payments at National Highway fee plazas will be processed exclusively through digital modes using FASTag or Unified Payments Interface (UPI).
“The proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of NH fee (toll) plaza operations. The transition will help to enhance ‘Ease of Commuting’ for NH users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency in toll transactions,” the ministry said.
It noted that FASTag penetration has crossed 98 per cent in recent years, significantly transforming toll collection practices. At present, most toll transactions are processed electronically through RFID-enabled FASTags affixed to vehicles, enabling seamless and contactless movement across plazas. UPI payment facilities have also been operationalised at toll plazas to provide instant digital payment options.
Under existing National Highways fee rules, vehicles entering a toll plaza without a valid and functional FASTag are charged twice the applicable user fee if payment is made in cash. NH users opting to pay through UPI are charged 1.25 times the user fee applicable to their vehicle category. “These initiatives have collectively advanced the objective of reducing dependency on cash transactions and digitising the tolling framework,” the ministry said.
According to plaza-level assessments, cash payments contribute to congestion, longer waiting times during peak hours and transaction-related disputes. The ministry said a complete shift to digital payments would improve operational efficiency, traffic management and user experience at over 1,150 fee plazas on National Highways and Expressways.
“The initiative is aligned with the broader NHAI objective of developing a technology-driven, high-efficiency National Highway network that delivers faster, seamless services to users across the country,” it added.