Cash transactions at NH toll plazas likely to be discontinued

Cash transactions at NH toll plazas likely to be discontinued

## Toll Plaza Transactions Poised for Digital Overhaul: Cash Payments Phased Out by 2026

**New Delhi, India –** The National Highways Authority of India (NHAI) is reportedly preparing to transition its toll plaza payment systems towards a fully digital model, with plans to discontinue cash transactions by April 1, 2026. This significant shift aims to streamline traffic flow, enhance operational efficiency, and promote greater transparency in toll collection across the nation’s extensive highway network.

Under the proposed directive, commuters will be required to utilize either the FASTag electronic toll collection system or the Unified Payments Interface (UPI) for all toll payments. This move represents a decisive step away from traditional cash-based transactions, which have long been a source of congestion and delays at toll booths. The implementation of this digital-first approach is expected to substantially reduce waiting times, thereby improving the overall travel experience for millions of motorists.

The FASTag system, a widely adopted radio-frequency identification (RFID) tag affixed to vehicle windshields, allows for seamless, automatic deduction of toll charges as vehicles pass through designated lanes. Its widespread adoption in recent years has already demonstrated the potential for faster toll processing. Complementing this, the integration of UPI, a real-time payment system developed by the National Payments Corporation of India (NPCI), will offer an additional convenient and secure digital payment option for those who may not yet be equipped with a FASTag. This dual approach ensures a broad spectrum of users can adapt to the new payment regime.

Sources close to the NHAI indicate that the decision to phase out cash payments is driven by a multifaceted strategy. Beyond improving traffic efficiency, the move is anticipated to bolster security by reducing the handling of physical currency, thereby mitigating risks associated with cash management. Furthermore, a fully digital system is expected to provide more accurate and real-time data on toll revenue, enabling better financial planning and accountability. The NHAI has been actively encouraging the adoption of FASTag for several years, and this forthcoming mandate is seen as a natural progression of that initiative.

While the transition is slated for April 2026, it is understood that the NHAI will likely undertake a comprehensive awareness campaign in the preceding months to educate the public about the upcoming changes. This will involve disseminating information through various channels, including media, government websites, and potentially direct outreach programs, to ensure a smooth transition for all road users. The authority is also expected to work closely with financial institutions and technology providers to ensure the robustness and accessibility of the digital payment infrastructure.

The elimination of cash transactions at toll plazas marks a pivotal moment in the modernization of India’s transportation infrastructure. It aligns with the broader national agenda of promoting digital payments and creating a more efficient and technologically advanced economy. As the deadline approaches, stakeholders are urged to familiarize themselves with FASTag and UPI payment methods to ensure uninterrupted travel on national highways. This forward-looking policy promises to redefine the commuter experience, ushering in an era of faster, safer, and more convenient toll collection.

This article was created based on information from various sources and rewritten for clarity and originality.