The Ministry of Road Transport and Highways has announced a significant change to India’s highway toll payment system, introducing a revised structure that will take effect on November 15, 2025. The update aims to encourage digital transactions while easing penalties for drivers who have yet to adopt FASTag technology.

Revised Toll Structure for Non-FASTag Vehicles

Under the new framework, vehicles without a FASTag sticker will no longer be required to pay double the standard toll if they choose to make payments through digital methods such as UPI or other electronic platforms. Instead, these motorists will be charged 1.25 times the base toll rate. This adjustment replaces the existing rule that imposes a uniform double charge on all non-FASTag users, regardless of their payment method.

Encouraging Digital Payments on Highways

The ministry’s move reflects an ongoing effort to promote cashless transactions across India’s extensive network of National Highways. By offering a reduced penalty for those opting for digital payments, authorities hope to make the transition smoother for drivers who have not yet fully integrated FASTag into their travel routines. The initiative also aligns with broader national goals of expanding digital infrastructure and improving transaction efficiency at toll plazas.

FASTag Users Continue Paying Base Toll

For motorists already using FASTag, there will be no change in the current system. These users will continue paying the standard base toll rate automatically through their linked accounts as they pass through electronic toll collection lanes. The government’s emphasis remains on encouraging more vehicle owners to adopt FASTag for its convenience and time-saving benefits.

Impact on Highway Traffic and Operations

Officials anticipate that this revised policy could help reduce congestion at toll booths by minimizing cash transactions and streamlining payment verification processes. With more drivers expected to use UPI or similar platforms, traffic flow at entry and exit points may become smoother, contributing to shorter wait times and improved overall efficiency on national highways.

A Balanced Approach Between Compliance and Convenience

The new rule represents a middle ground between strict enforcement and user convenience. While it still incentivizes FASTag usage by keeping its cost lowest, it also acknowledges that some drivers may prefer or require alternative payment options. By setting the digital payment rate at 1.25 times the base fee—rather than maintaining the previous double penalty—the ministry aims to strike a fair balance between compliance encouragement and financial practicality.

In summary, starting November 15, 2025, India’s highway toll system will adopt a more flexible approach toward non-FASTag vehicles. Those paying via UPI or other approved digital methods will benefit from reduced charges compared with cash payers, marking another step toward a more digitally integrated transportation network across the country.