Digital-only toll collection rolls out on national highways

The Union government has rolled out fully digital toll collection across national highways, mandating electronic payments through FASTag and Unified Payments Interface (UPI) at all fee plazas.

According to the Ministry of Road Transport and Highways, the new system came into effect on 10 April and aims to enhance transparency, reduce traffic congestion at toll booths and improve the efficiency of toll collection.

However, the rollout has been temporarily deferred in Tamil Nadu, Kerala, Assam and West Bengal, as well as the Union Territory of Puducherry, due to the enforcement of the Model Code of Conduct ahead of elections.

With over 98 per cent adoption, FASTag has transformed toll collection across the country. The system uses radio-frequency identification technology to enable seamless and contactless payments, significantly cutting down waiting times at toll plazas.

The National Highways Authority of India (NHAI) has also enabled UPI-based payments at toll plazas, offering motorists instant digital payment options.

Vehicles entering toll plazas without a valid FASTag are currently required to pay double the applicable fee if they choose to pay in cash.

The FASTag Annual Pass scheme has crossed 50 lakh users, recording more than 26.55 crore transactions within six months of its launch. The pass allows unlimited travel for one year or up to 200 trips on national highways for a one-time fee.

NHAI has revised the annual pass fee from Rs 3,000 to Rs 3,075 for the financial year 2026–27, effective from 1 April. The revision has been carried out in line with the National Highways Fee (Determination of Rates and Collection) Rules, 2008.

Officials said the shift to digital-only tolling is expected to improve traffic flow, enhance transparency in revenue collection and support India’s transition towards cashless transport infrastructure.