No more cash at tolls: FASTag and UPI take over highways

India’s highway travel is entering a faster and more digital phase with new toll payment rules.

The Ministry of Road Transport and Highways has now made FASTag and UPI the only accepted payment modes at toll plazas.

As a result, cash transactions at toll booths will no longer be allowed.

This move aims to reduce long queues and improve traffic flow on national highways. Moreover, it eliminates the misuse of ID cards for toll exemptions.

The ministry issued this notification on April 2, marking a significant shift in how commuters plan their journeys.

Under the new system, every vehicle must have an active FASTag linked to a bank account or digital wallet. Alternatively, commuters can pay toll charges using UPI.

However, UPI payments will cost more. Drivers choosing UPI will be charged 1.25 times the regular toll fee. Therefore, FASTag remains the more economical option for frequent travellers.

In addition, strict rules will apply to non-compliance. If a driver refuses to pay through UPI or lacks a valid FASTag, toll operators can deny entry.

This rule falls under the National Highways Fee Rules. Furthermore, authorities may issue an e-notice for unpaid tolls. In such cases, the commuter must pay double the standard fee, increasing the financial burden.

Another key development is the introduction of multi-lane free-flow tolling. This system, also known as barrier-free tolling, removes the need for vehicles to stop.

Instead, cameras and RFID technology automatically detect and charge vehicles as they pass. Consequently, travel becomes quicker and more seamless.

However, vehicles without FASTag will not escape charges. They will receive electronic notices for toll payments. Hence, installing FASTag is no longer optional but essential.

For regular highway users, there is a cost-saving option. Commuters can purchase an annual FASTag pass for ₹3,075.

This pass allows up to 300 toll crossings without additional charges. Therefore, it proves beneficial for those who travel frequently.

These changes promote digital payments and efficient road usage. They also ensure transparency while reducing congestion at toll plazas.

Image Credit: Arindambasu2, CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:National_Highway_6_Toll_Plaza.jpg