The Indian government has announced a significant change impacting vehicle owners traveling on national highways. Motorists without a FASTag or with a malfunctioning FASTag will now experience a reduced toll fee. Instead of paying double the toll amount, they will only be charged 1.25 times the standard toll if they opt to pay via UPI. Earlier, vehicles lacking a valid FASTag were subjected to double the toll when paying cash at toll plazas. This initiative is part of the government’s effort to promote digital transactions.
The government’s decision involves modifications to the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The intent is to reduce cash transactions on highways and encourage the adoption of digital payment solutions. According to the government’s statement, the amendment seeks to promote digital payments and gradually eliminate cash transactions. Consequently, vehicles arriving at toll plazas without a valid FASTag will incur double the toll charges when paying in cash, whereas UPI users will only be charged 1.25 times the toll fee.
Here’s how the savings break down:
* Standard toll amount: Rs 100
* Payment with FASTag: Rs 100
* Cash payment: Rs 200
* Payment via UPI: Rs 125
This means drivers without a functioning FASTag can save approximately Rs 75 by using UPI. The aim is to foster digital payments and reduce congestion at toll booths.
The government anticipates that this change will enhance the transparency and efficiency of toll collection. It will save time spent on cash transactions and reduce waiting times for drivers at toll plazas. These updated rules are intended to benefit both the public and the government by improving toll collection processes.
These new rules will be implemented on November 15, 2025, at all national highway toll plazas nationwide. The government’s goal is to make all toll lanes cashless and fully digital, leading to easier and quicker highway travel across India.