Major Toll Rule Overhaul From April 10: Cash Payments Banned, FASTag Mandatory; What It Means For Highway Users And How It Will Affect Travel

The Government of India has announced that cash payments at highway toll plazas will be completely stopped from April 10, 2026. From this date, commuters will only be able to pay toll charges through FASTag or UPI, marking a full shift towards a digital toll collection system.

FASTag will remain the primary mode of payment, while UPI will serve as an alternative for vehicles that do not have a valid FASTag. However, reports indicate that those paying via UPI without FASTag may be charged 1.25 times the standard toll fee, making FASTag the more economical option for users.

Why The Government Is Ending Cash Payments

The decision is aimed at improving efficiency and reducing congestion at toll plazas. Cash transactions have often led to long queues and delays, especially on busy routes. By moving to a cashless system, authorities expect smoother traffic flow, quicker payments, and shorter waiting times for commuters.

The adoption of FASTag has already gained strong momentum across the country. According to Union Minister Nitin Gadkari, around 5.9 crore FASTags are currently active out of 11.86 crore issued so far. Additionally, the FASTag Annual Pass has seen rapid acceptance, crossing 50 lakh users within just six months of its launch.

Impact On Daily Highway Users

This move will directly affect millions of commuters, including private vehicle owners, commercial drivers, and transport operators who still rely on cash payments. With cash lanes being removed, it is important for users to ensure their FASTag is active and adequately recharged before travel.

Those without FASTag will still have the option to pay through UPI, but the higher charges could discourage frequent use of this method. Over time, the system is expected to push near-universal adoption of FASTag across all vehicles in India.

With the deadline approaching, commuters are advised to install FASTag if they have not already done so and keep their accounts updated. Having a UPI payment option ready as a backup can also help avoid delays and inconvenience while travelling on highways.

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