FASTag Mandatory as Govt Ends Cash Payments at Toll Plazas

Cash payments at highway toll booths are set to end from April 10, with the government enforcing digital-only options. Vehicles using national highways will need to pay either through FASTag or by using UPI, with the latter attracting a premium charge. The move is aimed at smoother traffic flow, fewer disputes at plazas, and preventing commuters from flashing identity cards to avoid paying.

The change follows a gazette notification issued on April 2 by the Ministry of Road Transport and Highways. The notification states that toll operators on national highways will stop accepting cash for user fees. From April 10, every vehicle entering a toll gate must either use FASTag or pay higher charges through UPI, eliminating any remaining cash component from the system.

How the new FASTag toll rule changes payments

Under the revised framework, the ministry says a vehicle with a valid FASTag will continue to pay the regular toll rate. If a commuter chooses not to use FASTag, or does not have one, payment through UPI remains possible at the plaza. However, the user will then need to pay 1.25 times the normal toll amount for that category.

Earlier rules gave commuters an alternative that involved cash, but at a higher cost. A person without a working FASTag could pay double the applicable fee in cash and still cross the plaza. That option now disappears, as the ministry has clarified that toll booths on national highways will no longer accept currency notes at all, regardless of circumstances.

Penalties and enforcement under the FASTag toll rule

The system also covers situations where neither FASTag nor UPI works at the time of crossing. A March 18 release from the National Highways Authority of India introduced the concept of an "unpaid user fee". If a vehicle passes through a toll gate without making payment, an electronic notice will be generated automatically for the registered vehicle owner.

According to the release, the e-notice will reach owners through SMS, email, mobile applications, or other digital channels, and will also appear on a specified online portal. The notice will mention double the applicable toll amount. Yet, if the owner pays the outstanding fee within 72 hours of issue, no extra charges beyond the usual toll will apply.

Delayed payments attract steeper penalties under the same framework. When the amount is cleared after 72 hours, the commuter will have to pay double the toll fee mentioned for that vehicle class. If no payment is made even after 15 days from the e-notice, the outstanding sum will be updated in the Ministry of Road Transport and Highways' VAHAN database, leading to "appropriate restrictions" on the vehicle.

The new rules sit alongside other recent changes on national highways, including a 3%-5% toll hike and a decision by the National Highways Authority of India to make FASTag mandatory across its network. Fees for FASTag annual passes are also becoming higher from April. Together, these measures signal a clear push towards electronic tolling, strict compliance, and reduced congestion across India's national highway system.