India Plans Fully Digital Highway Tolls from April 2026

The Indian government is planning to discontinue cash payments at all National Highway toll plazas starting April 1, 2026, as part of a nationwide push for a fully digital tolling ecosystem. Under the proposal, all toll transactions would be processed electronically using FASTag or Unified Payments Interface (UPI), eliminating the need for manual cash collection and reducing congestion at toll booths.

FASTag adoption has already crossed 98%, making it the primary payment method across the country. The RFID-based system automatically deducts toll charges, allowing vehicles to pass without stopping, while UPI provides commuters with an instant digital payment alternative. Pricing incentives, including higher charges for cash payments, have helped accelerate the shift toward digital transactions.

Officials said the move will improve traffic management, reduce delays, and increase transparency in toll collection. If implemented, the policy would apply to over 1,150 toll plazas nationwide, enhancing commuter experience and supporting real-time monitoring and data-driven traffic management. The final decision is expected closer to the April deadline, after system readiness assessments and consultations.