NHAI Plans To End Cash Toll Payments From April 1
The National Highways Authority of India (NHAI) is planning to discontinue cash payments at toll plazas across the country from April 1, aiming to further streamline electronic toll collection and reduce congestion on highways. The move is part of the government’s push toward fully digital toll transactions.
NHAI To Make FASTag Mandatory At Toll Plazas
Under the proposed system, FASTag-based electronic toll collection will become the primary mode of payment at national highway toll plazas. Vehicles without valid FASTag accounts may face penalties or higher charges as authorities seek to eliminate manual cash handling.
Officials have stated that the objective is to ensure seamless traffic movement, reduce waiting time at toll booths, and improve overall highway efficiency. FASTag, which uses radio frequency identification technology, automatically deducts toll charges from linked bank accounts or prepaid wallets.
Digital Toll Collection To Reduce Congestion
NHAI has been steadily increasing FASTag penetration over the past few years, with most vehicles on national highways already using the system. The elimination of cash lanes is expected to reduce bottlenecks, especially during peak travel hours and holiday seasons.
Electronic tolling also allows better monitoring of vehicle movement and improved data collection for traffic management and infrastructure planning.
Impact On Highway Users And Toll Operations
Motorists who have not yet installed FASTag will be required to do so before the new system comes into effect. Authorities are expected to issue detailed guidelines to ensure a smooth transition.
The move aligns with the broader digital payments ecosystem in India, where electronic transactions have expanded significantly across sectors.
