Cash payments will be completely discontinued at all National Highway toll plazas in India starting from April 10, 2026. Under the regulations, people will be obliged to pay by the FASTag method, which has been the leading and most cost-effective way for payments in these areas.
The only option for vehicles arriving without a functional FASTag is to pay digitally using UPI (Unified Payments Interface). This convenience comes with a financial penalty: those who decide to use UPI instead of FASTag will end up paying 1.25 times the standard toll fee (a 25% surcharge), while cash is no longer an “acceptable way of paying for the process” of clearing the gates.
This has been met with backlash from the Karnataka State Travels Operators Association that has formally opposed the sudden stop to cash transactions. These "tight rules," the association says, would result in greater friction and heated arguments at toll stations. It has posed practical problems of travelers forgetting on account of emergencies to recharge their FASTag or not having access to UPI.
Industry members have called on the government to loosen the rules, insisting it’s physically impossible and sometimes dangerous to turn back vehicles at a toll plaza merely due to a digital payment failure. While digitalization is the object, they say, rural traveler realities must also take account of digital literacy and that public outrage should not be provoked.
When a vehicle passes over a toll booth with no immediate digital payment, the government is introducing an "Electronic Notice" (e-notice) program. The e-notice will be sent over an SMS or email message, in which the vehicle operator can pay the bill online within 72 hours without another fee.
But if the payment is not made within 72 hours, the fine will more than double. If the payment remains unpaid for over 15 days, the vehicle's record will be marked in VAHAN's system and may prevent RTO services such as ownership transfers, fitness renewals, and permit issuances. Commuters, in preparation for the deadline of tomorrow, are encouraged to update and fund all their FASTags, so that they do not face the 25% UPI surcharge or other issues in the courts.
