Cash Payments May End At Toll Plazas From April 1, 2026 — A Big Digital Shift For Highway Travel

By Jony Shekhawat | Published Date : February 23, 2026

Digital toll collection push by the National Highways Authority of India aims to reduce highway delays, improve traffic flow and support faster movement for trucks, buses, pickup trucks and electric commercial vehicles across the country.

People travelling on national highways may soon see a major change in the way toll tax is paid. The Government is preparing to make toll plazas fully digital across the country. As per the new plan, cash payments at highway toll booths could be completely stopped from April 1, 2026. After this, toll payments may happen only through FASTag or UPI.

For drivers of truck, pickup trucks, private cars and even long-distance buses, this move is expected to make highway travel faster and smoother.

Why The Government Is Planning This Change

Table of Contents

1. Why The Government Is Planning This Change

2. New System To Cover More Than 1,150 Toll Plazas

3. FASTag Success Became The Biggest Reason

4. UPI As Backup Option

5. Toll Charges — Cash Vs FASTag Vs UPI

6. What Travellers And Fleet Owners Should Do

7. A Step Toward A Fully Cashless Highway System

Read More: Truck Overloading Rules and Penalties in 2026

As per NHAI, cash payment at toll plazas often leads to long lines, mainly during busy hours. Drivers have to wait for change or receipts, and this slows down traffic for everyone on the highway.

Big commercial vehicles like trucks and buses usually lose more time in these lanes because manual payment takes longer. With a fully digital system, vehicles can cross toll gates smoothly without stopping again and again. Officials believe this will reduce traffic jams, save fuel and also make toll collection more transparent.

New System To Cover More Than 1,150 Toll Plazas

The new rule is expected to apply at more than 1,150 toll plazas and expressways across India. Authorities say digital payments will help better data management and reduce revenue leakage.

For fleet operators running logistics businesses with pickup trucks or electric mini trucks, less waiting time at toll booths can directly improve delivery schedules. Faster highway movement also helps electric buses maintain proper travel timing.

The government wants to make the highway network more technology-driven and efficient in the coming years.

FASTag Success Became The Biggest Reason

FASTag adoption has already reached a very high level in the country. According to NHAI data, more than 98% of vehicles already use FASTag. FASTag works through RFID technology. A sticker placed on the vehicle windshield automatically deducts toll money from a linked bank account or wallet when the vehicle crosses a toll lane.

Because vehicles do not need to stop, drivers of trucks, buses and even electric trucks save both time and fuel during long highway journeys.

UPI As Backup Option

Along with FASTag, the government has also strengthened UPI payment options. If FASTag does not work due to technical reasons or low balance, drivers can quickly pay toll using UPI.

This option is especially useful for commercial operators running mini trucks who cannot afford delays during deliveries or passenger trips. However, authorities are also setting rules to encourage digital discipline.

Toll Charges — Cash Vs FASTag Vs UPI

Under current rules, if a vehicle has an active FASTag but still chooses to pay cash, the toll amount can be charged double. This rule already discourages manual payment.
UPI payments may attract around 1.25 times the normal toll charge, while FASTag payments continue at the regular toll rate.

Because of this pricing difference, most commercial vehicle operators, including electric truck fleets and pickup trucks used for logistics, already prefer FASTag lanes.

What Travellers And Fleet Owners Should Do

If your vehicle FASTag is inactive or KYC is incomplete, it is better to update it before April 2026.

Highway users should:

• Keep FASTag active on the vehicle
• Maintain enough balance in the FASTag wallet
• Keep a UPI app ready as a backup payment option

This preparation will help avoid delays at toll plazas once the new rule starts.

A Step Toward A Fully Cashless Highway System

If implemented as planned, national highway toll plazas may become completely digital from April 1, 2026. Faster movement will help reduce fuel use and waiting time for all vehicles — from private cars to heavy trucks and buses.

For logistics companies using pickups, smoother toll crossings can improve overall efficiency. In simple words, the move is being seen as another strong step toward a faster, cleaner and cashless highway travel system in the country.

Also Read: JSW Greentech’s 12-Meter Electric Bus Receives CMVR Certification from ARAI

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Frequently Asked Questions on Commercial Vehicles

Q1. What is the average price range of commercial trucks in India?

Ans. Entry-level commercial trucks usually start around Rs 7–8 lakh, while heavy-duty long-haul trucks can go above Rs 40–50 lakh depending on load capacity and features.

Q2. What mileage do commercial trucks normally deliver?

Ans. Mileage depends on size and load. Small trucks may give 12–16 kmpl, medium trucks around 7–10 kmpl and heavy trucks usually deliver 3–5 kmpl on highways.

Q3. Which features are important in modern commercial trucks?

Ans. Power steering, air brakes, digital instrument cluster, sleeper cabin, telematics tracking and fuel-efficient engines are some key features fleet owners look for today.

Q4. Are electric commercial trucks suitable for city delivery work?

Ans. Yes, electric trucks are becoming popular for city logistics because of low running cost, quiet operation and zero tailpipe emissions, especially for last-mile delivery operations.

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