Highway travel across India is on the cusp of a significant transformation. From April 1, the government plans to eliminate cash payments at toll plazas on national highways, making digital payment methods such as FASTag and Unified Payments Interface (UPI) mandatory. The move is part of a broader push to modernise road infrastructure, reduce congestion, and improve the overall driving experience for millions of commuters and freight operators who rely on the national highway network every day.

Although an official notification is still awaited, preparations are already underway, and authorities have begun aligning toll operators and enforcement agencies for a smooth transition. Once implemented, the decision will mark the end of an era in which cash transactions at toll booths were the norm, often leading to long queues, delays, and disputes over change.

Why the Government Is Ending Cash Payments at Toll Plazas

The primary objective behind making toll plazas cashless is to ease traffic congestion. Cash payments require vehicles to slow down or stop, exchange money, and wait for receipts or change. During peak hours or holiday traffic, this leads to long queues that can stretch for kilometres, particularly on busy corridors connecting major cities.

By mandating digital payments, the government expects vehicles to pass through toll plazas much faster. FASTag-enabled lanes already allow near-seamless movement, while UPI-based payments can significantly cut transaction time compared to cash. Faster movement at toll booths translates into shorter travel times, less driver frustration, and improved road safety.

Another key motivation is fuel efficiency. Frequent stopping and starting at toll plazas leads to unnecessary fuel consumption and higher emissions. Reducing these stoppages is expected to save fuel, lower carbon emissions, and support India’s broader climate and sustainability goals.

Transparency is also a major factor. Digital transactions leave an electronic trail, reducing the scope for revenue leakage, accounting errors, or disputes between commuters and toll operators. For the government, this means better monitoring of toll collections and improved efficiency in highway financing.

What Payment Methods Will Be Allowed

Under the new system, toll payments will be accepted only through digital modes. The two primary options will be FASTag and UPI.

FASTag, a radio-frequency identification (RFID)-based sticker affixed to a vehicle’s windshield, automatically deducts toll charges from a linked bank account or prepaid wallet as the vehicle passes through a toll lane. It has already been mandatory for most vehicles on national highways, but cash lanes have continued to operate alongside FASTag lanes.

UPI payments are expected to serve as an alternative for users who may not have FASTag or face technical issues with their tags. This could involve scanning QR codes at toll booths or using other UPI-enabled systems designed for quick payments.

Authorities believe that offering both options will make the transition smoother, especially for occasional highway users or those who may not yet be fully comfortable with FASTag.

What Happens to Vehicles Without Digital Payment Options

Once cash payments are discontinued, vehicles that arrive at toll plazas without FASTag or the ability to make UPI payments may face delays, penalties, or be diverted to designated lanes for resolution. While the exact enforcement mechanism will be detailed in the official notification, officials have indicated that strict compliance will be required to ensure the system works efficiently.

In the past, vehicles without FASTag were often charged double the toll amount as a penalty. A similar deterrent mechanism may be used to discourage non-digital payments and push users to adopt the new system quickly.

For commercial vehicle operators, logistics companies, and fleet owners, the shift makes it essential to ensure that all vehicles are properly equipped with functioning FASTags and that drivers are trained to handle digital payments if required.

Preparing for a Barrier-Free Tolling Future

The move to cashless tolls is not an isolated reform but part of a larger vision to create a barrier-free tolling system across India’s highways. The government has been working towards a model known as Multi-Lane Free Flow (MLFF), where vehicles can pass through toll zones at normal highway speeds without stopping at physical barriers.

Under MLFF, tolls are charged using advanced technologies such as automatic number plate recognition (ANPR), overhead sensors, and RFID systems. Cameras and scanners identify vehicles as they pass under gantries, and toll charges are deducted automatically.

A trial run of this no-stop tolling system is already underway at 25 toll plazas across the country. Early results from these pilot projects are being studied to assess accuracy, efficiency, and user experience. If successful, the system could be expanded nationwide in phases, fundamentally changing how tolls are collected in India.

The shift to mandatory digital payments from April 1 is seen as an important stepping stone toward this future, familiarising drivers with cashless transactions and reducing dependence on manual toll booths.

Benefits for Commuters and the Economy

For daily commuters and long-distance travellers, the most immediate benefit will be reduced waiting time at toll plazas. Smoother traffic flow means shorter journeys and less stress, especially on heavily used highways.

The logistics and transport sector is also expected to gain significantly. Faster toll crossings can improve turnaround times for trucks, reduce fuel costs, and enhance supply chain efficiency. Over time, these savings could translate into lower transportation costs and more competitive pricing for goods.

From an economic perspective, more efficient toll collection improves revenue realisation, which in turn supports highway maintenance and expansion. National highways are largely funded through toll revenues, and better collection mechanisms strengthen the financial sustainability of road infrastructure projects.

Challenges and Concerns

Despite its advantages, the move to fully cashless tolling is not without challenges. Connectivity issues, technical glitches in FASTag systems, or UPI payment failures could cause temporary disruptions, particularly in remote areas.

There are also concerns about awareness and preparedness, especially among drivers who use highways infrequently or come from regions with limited digital literacy. Ensuring that clear signage, help desks, and grievance redress mechanisms are in place at toll plazas will be crucial during the initial phase.

Privacy and data security are another area of focus. As tolling becomes more digitised, large volumes of vehicle movement data will be generated. Safeguarding this data and ensuring it is used responsibly will be essential to maintain public trust.

What Drivers Should Do Now

With April 1 approaching, drivers are advised to check that their FASTag is active, properly affixed, and linked to a bank account with sufficient balance. Those who do not yet have a FASTag should obtain one well in advance to avoid last-minute issues.

Familiarity with UPI-based payments is also recommended, especially for backup purposes. Keeping a smartphone charged and ensuring access to a reliable payment app can help avoid inconvenience at toll plazas.

For commercial operators, conducting audits of vehicle compliance and training drivers on digital payment procedures can prevent operational disruptions once the new rules come into force.

A Step Towards Faster, Smarter Highways

The decision to eliminate cash payments at national highway toll plazas represents a significant milestone in India’s journey toward smarter and more efficient transport infrastructure. While the transition may involve short-term adjustments, the long-term gains in speed, transparency, and sustainability are expected to outweigh the challenges.

As India continues to expand its highway network and integrate advanced technologies, cashless tolling is set to become the norm rather than the exception. From April 1, highway travel will not just be about reaching destinations faster, but also about embracing a more modern, digital way of moving across the country.