The Ministry of Road Transport and Highways has notified that cash transactions at toll plazas will be discontinued from April 10, in a major move aimed at reducing long queues and easing congestion on national highways.
Under the new rule, all toll payments must be made digitally through FASTag or UPI. Vehicles without a valid FASTag will still be allowed to pass, but will have to pay 1.25 times the applicable toll fee via UPI.
The ministry has also tightened rules around toll exemptions. Government officials and eligible entities have been asked to obtain “Exempted FASTags” or opt for a FASTag-based annual pass. The annual pass for private cars is priced at ₹3,075 and allows up to 200 crossings across toll plazas.
Officials said the move is intended to curb misuse of toll exemptions, where individuals often display identity cards to avoid paying tolls even while using private vehicles. “Exemptions are linked to offices or authorities, not individuals,” an official clarified, noting that such practices frequently lead to disputes at toll booths.
As per the notification, vehicles without valid FASTags that fail to pay via UPI may be denied entry or removed from the highway under Rule 14 of the NH Fee Rules. Authorities can also issue an e-notice for unpaid tolls, and failure to clear dues within three days will attract double the charge.
The government’s push comes alongside plans by the National Highways Authority of India to accelerate the rollout of multi-lane free-flow, signal-free tolling systems across the national highway network.
The transition to fully digital toll collection is expected to streamline traffic flow, reduce disputes, and improve overall commuter experience on India’s highways.