Summary of this article
India will make toll payments fully digital from April 10, 2026, with FASTag mandatory at all toll plazas and cash no longer accepted. UPI will be allowed only at 1.25 times the normal toll. Unpaid tolls will trigger e-notices
Toll payments on Indian highways will soon become completely digital. According to a gazette notification issued on April 2, 2026, the Ministry of Road Transport and Highways has made FASTag mandatory for toll payment. Cash payment will no longer be accepted at toll plazas to pass through a toll gate. The new rule is aimed at enhancing convenience in terms of easing congestion. In addition to this, the new rule will also eliminate the possibility for commuters to show their IDs to avoid payment while crossing a toll gate.
According to the new rule, effective April 10, 2026, FASTag will be mandatory for paying the toll at toll plazas. In the absence of a FASTag, the second option of payment is Unified Payment Interface (UPI). However, UPI payment will come at a cost; users will need to pay 1.25 times the normal toll rate.
As of now, the digital mode of payment has been made mandatory. Cash will no longer be an option for toll-tax payment. FASTag will be the regular payment option, and UPI can also be used, but with an additional fee. Previously, commuters could also pay toll fee with cash, although it was double the cost of the applicable toll fee.
FASTag was introduced as a pilot in 2014, but was mandated for use for four-wheelers in February 2021. Due to the digital push, the number of FASTag-enabled toll plazas has increased significantly since then. By early 2023, the number of toll plazas increased to 1,228, including 339 state toll plazas. The automatic payment while crossing the toll gate reduced waiting times and improved commuters’ experience.
As digital payment through FASTag has now been made mandatory, in case a vehicle passes without making payment, an e-notice (electronic notice) will be issued informing the vehicle owner to make the payment.
The National Highways Authority of India (NHAI) introduced the National Highways Fee (Determination of Rates and Collection) (Second Amendment) Rules, 2026, in March. The amended fee rules introduced a recovery mechanism “to strengthen digital enforcement of toll collection, particularly in the context of evolving barrier-free tolling systems and to ensure efficient and transparent realisation of user fee on National Highways.” It became effective from March 17, 2026.
According to the rule, the authorities will serve notice to users with unpaid fees through SMS, email, mobile application, and other electronic means. The information will also be made available on the Web portal. Users will have to pay twice the applicable toll amount in response to an e-notice, but when the payment is made within 72-hours of the issuance of the e-notice, only original toll fee will apply without any additional fee.
In case of failure to pay the amount for more than 15 days, the amount will be recorded in the VAHAN system, which may attract appropriate restrictions on vehicle-related services until dues are cleared.
