The Indian National Highways Authority has proposed an initiative to completely eliminate cash payments at toll plazas on national highways starting from April 1, 2026. Under this new system, all tolls will be paid solely through digital means, specifically FASTag or Unified Payments Interface (UPI). This proposal aims to reinforce the benefits of electronic toll collection while enhancing the efficiency and reliability of toll plaza operations. The digital shift is expected to increase lane capacity, reduce congestion at toll plazas, and bring transparency and uniformity to the payment processes, ultimately making journeys smoother for highway travelers.

Over the past few years, the proliferation of FASTag—now having over 98% penetration—has significantly transformed the toll collection landscape in India. Most toll transactions are currently conducted electronically through FASTag, which is based on RFID technology, enabling vehicles to pass through toll booths without stopping or physical contact. This technological advancement not only streamlines the toll payment process but also contributes to overall traffic flow on highways, allowing for faster travel times and reduced waiting periods at toll booths.

In light of the growing adoption of electronic toll collection methods, this shift towards a completely cashless system at toll plazas is a crucial step in upgrading India's infrastructure. The digital transformation may also reflect the government's broader agenda of promoting a cashless economy, aiming at increasing efficiency in various sectors while reducing reliance on cash transactions in everyday life. As India continues to embrace digital solutions in various domains, the toll collection system's evolution is a vital part of this larger trend, ensuring not only convenience for users but also enhanced revenue collection authentication for authorities.