Beginning November 15, 2025, India’s National Highway toll plazas will introduce revised payment regulations designed to encourage digital transactions and streamline traffic flow. Under the new framework, vehicles lacking a valid FASTag will face higher toll charges—either double the regular rate if paying in cash or 1.25 times the standard fee when using UPI.

Digital Push for Highway Payments

The upcoming toll policy is part of a broader initiative to strengthen digital infrastructure across India’s transport network. By incentivizing electronic payments, authorities aim to reduce manual cash handling and minimize delays at toll booths. FASTag, which uses radio-frequency identification (RFID) technology, allows automatic deduction of toll charges from linked accounts without requiring vehicles to stop.

Higher Charges for Non-FASTag Vehicles

According to the new rules, motorists who continue to rely on cash transactions will pay twice the usual amount at toll plazas. Those opting for UPI payments instead of FASTag will be charged 1.25 times the normal fee. The differential pricing structure is intended to motivate drivers to adopt FASTag and ensure faster passage through national highways.

Reducing Congestion and Wait Times

One of the key goals behind this policy shift is to ease congestion at toll gates. Cash payments often lead to longer queues and slower movement of vehicles, especially during peak travel hours. With more drivers using FASTag or other digital methods, traffic flow is expected to improve significantly, reducing both waiting time and fuel consumption caused by idling engines.

Improving Efficiency and Transparency

The move also supports greater transparency in toll collection by minimizing human intervention and potential discrepancies in manual transactions. Digital records provide clear tracking of payments, helping authorities monitor revenue more effectively while offering users an easier way to manage their travel expenses through online statements and notifications.

Encouraging a Seamless Travel Experience

Officials believe that widespread adoption of FASTag will not only enhance convenience for commuters but also contribute to a more sustainable transportation ecosystem. With fewer vehicles stopping at plazas, emissions from idling engines can be reduced, contributing positively to environmental goals while improving overall highway efficiency.

The revised toll payment system marks another step toward India’s growing digital transformation in public infrastructure management. By rewarding electronic payment users with faster service and penalizing cash-based transactions with higher fees, the government seeks to create a smoother, more efficient experience for millions of highway travelers nationwide.