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So the highway toll booth is going digital for good. NHAI plans to kill cash deals at all plazas by April 1, 2026. The goal? Zero wait times. In fact, officials want to end the long lines that choke our roads. Plus, the move brings total transparency to the till.
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New Rules for FASTag and UPI
But here is the main shift for drivers. You must use FASTag or UPI to pass the gate. Is cash still an option? Not for long. And the state wants 100% digital flow across all lanes. Consequently, the 98% tag rate today is just the start.
Moreover, the cost of using paper money is rising. Now, entering a lane without a tag costs you double the fee. Previously, it was a choice. So if you pay with UPI instead, you pay 1.25 times the rate. Therefore, the tag is the only way to save.
Summary of NHAI Toll Rules (Effective April 2026)
| Payment Mode | Cost Multiplier | Status |
| 🏷️ FASTag | 1x (Normal Fee) | MANDATORY |
| 📱 UPI Payment | 1.25x Fee | ACCEPTED |
| 💵 Cash Payment | 2x Fee (Double) | DISCONTINUED |
| 🎟️ Annual Pass | ₹3,000 (200 Trips) | BEST VALUE |
| 🛣️ Plazas Covered | 1,150+ | NATIONWIDE |
The Rise of the FASTag Annual Pass
Still, frequent flyers on the road have a cheaper path. The FASTag annual pass just hit 50 lakh users. The cost? ₹3,000 per year. And this covers up to 200 trips through any toll gate. Accordingly, it is the best deal for the daily drive.
But why the rush to ban the rupee? NHAI says cash slows down the lane throughput. The delay? Significant. Plus, handling physical notes leads to errors and leaks. Essentially, the digital switch keeps the money safe and moving.
Impact on 1,150+ Fee Plazas
Then there is the sheer scale of this change. India has over 1,150 toll plazas on its main roads. The reach? Massive. And every single one must follow the new April 1 rule. Indeed, it marks the end of an era for the highway booth.
Worth noting: The state has seen 26 crore trips on the new passes already. They have the data to prove it works. So if you still carry a wallet in your glove box, swap it for a tag. Ultimately, the “Street” is going paperless.
Frequently Asked Questions (FAQs)
Will cash be accepted at toll plazas after April 1, 2026? So the NHAI plans to discontinue cash transactions entirely. Because of this, you will need a valid FASTag or a UPI app to pay your way.
What is the penalty for paying in cash at a toll plaza? In fact, the National Highway Fee Rules mandate a double fee for cash users. Consequently, you pay 2x the normal rate if you don’t have a working tag.
How much does the FASTag annual pass cost? But the pass costs ₹3,000 for one year. Specifically, it allows you to make 200 crossings, which is a steal for regular commuters.
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