NHAI Proposes Complete Shift to Cashless Toll Collection Across 1,150 Plazas from April 1

National Highway Toll Plazas: Preparations are underway to completely stop cash transactions on national highways under the National Highways Authority of India. A proposal has been prepared and sent to the government for this purpose.

Jaipur: The National Highways Authority of India (NHAI) is preparing to completely stop cash transactions on national highways under its purview. A proposal has been prepared and sent to the government for approval. If approved, transactions at over 1150 toll plazas across the country operated by NHAI will completely cease from April 1.

With the cessation of cash transactions, all payments at national highway toll plazas will be made exclusively through digital means, using FASTag or the Unified Payments Interface (UPI). This transition is expected to streamline commuting for national highway users by improving the efficiency of toll plaza lanes, reducing congestion at toll plazas, and bringing greater efficiency and transparency to toll transactions.

98 Per cent Payments via FASTag

Toll payments at toll plazas across the country are currently being collected via FASTag. According to NHAI, approximately 98 per cent of toll payments are being made through FASTag. Currently, as per the National Highways Fee Rules, vehicles entering toll plazas without a valid and active FASTag are charged double the fee if they pay in cash. For those paying via UPI, a fee 1.25 times the prescribed rate is charged.

What are the Benefits?

The complete cessation of cash transactions on national highways will bring several significant benefits. The primary objective of this NHAI initiative is to make the toll system faster, more transparent, and modern. The biggest advantage will be the relief from long queues at toll plazas. With payments made through FASTag or UPI, vehicles will be able to pass through quickly without stopping, thereby reducing travel time.

Digital payments will significantly improve the efficiency of toll lanes. Currently, the process of exchanging cash for payments takes time, leading to traffic jams. However, with a digital system, payments will be completed in a matter of seconds, eliminating jams. The discontinuation of cash transactions will also reduce the possibility of corruption and irregularities. Furthermore, it will lead to savings in fuel consumption and a reduction in pollution.