India’s highway toll system is set for a major transformation as the government mandates a complete shift to cashless payments at toll plazas from April 10. The move, announced by the Ministry of Road Transport and Highways, aims to reduce long queues, improve traffic flow and promote digital transactions across the country.
Under the new rule, cash payments will no longer be accepted at toll booths. Instead, FASTag will remain the primary mode of payment, allowing vehicles to pass through plazas seamlessly without stopping. Vehicles without a valid FASTag will still have an option to pay via UPI, but at a higher cost—1.25 times the applicable toll fee.
This pricing strategy is designed to encourage wider adoption of FASTag, which uses RFID technology to automate toll collection and minimize delays. The government believes that a fully digital tolling ecosystem will not only enhance commuter convenience but also reduce disputes and operational inefficiencies at toll plazas.
The transition reflects India’s broader push toward digital infrastructure and smart mobility solutions. While the move may initially inconvenience drivers without FASTag, it is expected to create a smoother and faster travel experience in the long run.
With over a thousand toll plazas across national highways, this policy marks a significant step toward modernizing India’s road transport system and aligning it with global standards of efficiency and automation.
