India's New Toll Payment Rules: Double Fee for Cash, 1.25x for UPI Starting November 15

The Government of India has announced a significant change in toll payment regulations effective November 15. Vehicles arriving at toll plazas without a valid FASTag will be required to pay double the standard fee if they opt for cash payment. Alternatively, those using Unified Payment Interface (UPI) will face a lower surcharge of 1.25 times the regular toll amount.

This regulatory update comes as an amendment to the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The primary objective is to reduce cash transactions while promoting digital payment methods across India's national highways network.

To illustrate the impact: if a vehicle's standard FASTag toll is Rs 100, cash payments would cost Rs 200, while UPI payments would be Rs 125. This structured approach aims to enhance traffic flow efficiency, increase transparency in toll collection processes, and motivate commuters to embrace digital payment options.

Government officials have indicated that this initiative aligns with India's broader digital economy objectives while establishing a faster and more efficient toll collection system throughout the national highway infrastructure.

FASTag is an electronic toll collection system managed by the National Highways Authority of India (NHAI). The system connects to a prepaid or savings account and enables vehicles to move through toll plazas without stopping for manual cash transactions. Utilizing Radio Frequency Identification (RFID) technology, FASTag automatically deducts appropriate toll charges, considerably decreasing waiting periods and traffic congestion.

Since becoming mandatory for most vehicles in 2021, the government has continuously expanded FASTag implementation. With this latest policy modification, authorities aim to further discourage cash transactions while providing benefits to commuters who adopt digital payment methods.

This amendment is expected to not only boost highway operational efficiency but also strengthen the nationwide digital payment ecosystem.

Earlier this year, on August 15, NHAI introduced a FASTag-based annual pass system. This innovation allows seamless travel across national highways without requiring frequent recharging of RFID cards for toll payments.

The prepaid annual pass is exclusively available for non-commercial private vehicles, including cars, jeeps, and vans.

According to an official announcement on social media platform X on October 15, 2025, the FASTag annual pass has already surpassed 25 lakh users.