The Ministry of Road Transport and Highways (MoRTH) has introduced a new toll collection framework across India’s national highways, marking a significant shift in how non-FASTag payments are handled. Under the updated policy, vehicles without an active FASTag will now be charged higher toll rates based on their chosen payment method.
While FASTag users will continue to pay the standard toll amount, those opting to pay via UPI or other digital means will now incur a 25 percent higher charge. Cash payments, on the other hand, will remain the most expensive option at double the regular rate.
A Step Toward a Cashless, Faster Toll System
The revised structure aims to further streamline traffic flow and minimize delays at toll plazas — a common issue caused by manual cash transactions. By encouraging digital payments, MoRTH hopes to make toll operations faster, more transparent, and environmentally friendlier by reducing paper receipts and manual intervention.
Officials describe the new system as a “graduated deterrent” — discouraging cash payments while offering UPI as a temporary digital bridge for those yet to adopt FASTag. The government expects this move to accelerate the country’s transition toward fully automated tolling.
FASTag Dominates India’s Highways
The shift comes as FASTag continues to dominate toll payments nationwide. According to government data, over 7 crore FASTags have already been issued, accounting for 97 percent of all toll transactions. The tag enables automatic toll deduction via RFID technology, allowing vehicles to pass through plazas without stopping — saving both time and fuel.
Why FASTag Still Makes the Most Sense
With the new fee structure in place, FASTag remains the most convenient and cost-effective choice for motorists. Drivers are advised to keep their tags active, linked to the correct bank account, and sufficiently recharged to avoid paying higher tolls.
As India moves toward a smarter and more digital highway network, the government’s latest update sends a clear message — the future of tolling is fast, contactless, and cash-free.
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