The government has announced a revised toll collection framework for National Highways, aimed at promoting digital transactions and reducing cash dependency. From November 15, vehicles without a valid FASTag will face a 25 per cent reduction in toll surcharge if they opt to pay via the Unified Payment Interface (UPI).
Currently, drivers without a FASTag are required to pay double the toll in cash, a measure introduced to encourage the adoption of electronic toll collection and improve traffic flow at plazas. Under the new rule, cash payment will continue to attract the double charge, while UPI payments will incur only 1.25 times the standard toll, according to a statement issued by the Ministry of Road Transport and Highways (MoRTH).
"Under the new rule, vehicles entering a fee plaza without a valid, functional FASTag will be charged twice the applicable user fee, if the fee payment is made in cash. Such users who opt to pay the fee via the Unified Payment Interface (UPI), will be charged only 1.25 times the applicable user fee for that category of the vehicle," the ministry said.
This step follows the government’s continued push for a digital economy and greater transparency in public transactions. FASTag, introduced in 2019 under the National Electronic Toll Collection (NETC) programme, has gradually become mandatory for all vehicles. The tag, linked to a prepaid or bank account, allows automatic deduction of toll charges and aims to reduce congestion and delays at toll plazas.
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According to official data, the adoption of FASTag has resulted in faster vehicle movement at plazas and improved toll revenue collection. However, a significant number of commuters still rely on cash or have non-functional FASTags, creating bottlenecks and operational inefficiencies. The revised policy seeks to incentivise digital payments while offering a partial concession to UPI users.
MoRTH stated that the amendment to the National Highways Fee (Determination of Rates and Collection) Rules, 2008, would not only encourage the adoption of digital payments but also enhance transparency, streamline toll operations, and improve the overall user experience on National Highways.
The ministry also highlighted that the measure aligns with the government’s broader objective of reducing cash transactions across sectors and promoting financial inclusion through digital platforms.
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