India National Highway Tolls: Cash Payments Will Cost Double from November 15, 2025

From November 15, 2025, paying toll in cash on Indian national highways will cost double. This is a big change to encourage digital payments.
By Newsroom | Transport, India |

The landscape of toll payments on India's national highways is undergoing a significant transformation, with new rules poised to dramatically increase the cost for those who continue to rely on cash transactions. Beginning mid-November 2025, drivers without a valid FASTag or opting for cash payments will face a doubled toll fee, while those using Unified Payments Interface (UPI) will be charged 1.25 times the standard rate. This shift aims to accelerate the adoption of digital payment methods, improve traffic flow, and enhance the overall efficiency of toll collection.

FASTag or bust: Why carrying cash on highways might soon cost you double - 1

Background of Toll Payment Evolution

The move to a more digital tolling system has been gradual. For some time, national highways have been encouraging the use of electronic toll collection systems like FASTag. More recently, UPI payment options have been introduced at toll plazas, offering motorists an alternative digital channel.

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FASTag or bust: Why carrying cash on highways might soon cost you double - 2

  • Pre-existing disincentives: Current rules already penalize non-digital payments. Vehicles without a valid FASTag paying in cash are charged double the standard toll.

  • UPI's role: Drivers paying via UPI, even without a FASTag, are currently charged 1.25 times the prescribed toll.

  • The FASTag advantage: For vehicles equipped with a functioning FASTag, toll deductions occur automatically, allowing for passage without stopping.

New Rules and Their Implementation

The National Highways Fee (Determination of Rates and Collection) Rules, 2008, have been amended to implement these changes. The key adjustments are scheduled to take effect from November 15, 2025.

FASTag or bust: Why carrying cash on highways might soon cost you double - 3

  • FASTag users: Those with a valid FASTag will continue to pay the normal toll fee.

  • Non-FASTag users opting for UPI: These drivers will be charged 1.25 times the standard toll.

  • Non-FASTag users opting for cash: These drivers will face the highest penalty, being charged double the standard toll.

This tiered system appears designed to create a clear financial incentive for using FASTag, with UPI as a secondary digital alternative and cash as the least favored option.

Reasons for the Digital Push

The government's emphasis on digital toll collection is driven by several stated objectives:

  • Efficiency and speed: Digital payments, particularly FASTag, allow for rapid, non-stop passage through toll plazas. Cash transactions, by contrast, can significantly slow down traffic. A single cash transaction can take an estimated 12–15 seconds.

  • Reduced congestion: Faster passage of vehicles directly contributes to less crowding and fewer traffic jams at toll plazas.

  • Improved data and accountability: Digital systems provide more accurate data for toll collection and can enhance accountability among toll collection agencies.

  • Reduced cash dependence: The move aligns with broader national goals to decrease reliance on physical currency.

Varying Perspectives on the Changes

While the intent behind the new rules is clear, different sources highlight nuanced aspects and potential impacts:

Emphasis on Financial Incentives and Penalties

  • Several reports highlight the direct financial impact on drivers. For a ₹100 toll, paying in cash without FASTag would now cost ₹200, while using UPI would cost ₹125.

  • The changes are framed as making FASTag the "cheapest and smartest choice" for regular highway users.

  • One source notes that even if a FASTag scanner fails, drivers with proof of a valid FASTag may be exempt from penalties.

The Transitionary Role of UPI

  • UPI is presented as a "transitional digital alternative" for users who have not yet adopted FASTag.

  • While still incurring a penalty compared to FASTag, UPI payments are significantly less costly than cash.

  • The "relief" for UPI users is in comparison to the double penalty for cash, not in comparison to the standard FASTag rate.

Focus on Systemic Improvements

  • The overarching goal is to make toll collection more efficient, reduce congestion, and improve the overall experience for highway users.

  • The government aims for "more FASTag activations and fully active on the highway."

  • The digital shift is expected to lead to "better toll revenue accuracy."

Expert Analysis

"The government's move to double the toll for cash payments is a robust strategy to accelerate digital adoption. While disruptive for some, it aligns with global trends towards cashless economies and aims to resolve persistent issues of congestion and transaction inefficiency at toll plazas. The continued availability of UPI as a 1.25x option provides a necessary bridge for those not yet fully integrated into the FASTag ecosystem, ensuring a smoother transition."

— Based on aggregated insights from various news reports regarding government policy.

Conclusion and Implications

The implementation of new toll payment rules from November 15, 2025, signifies a decisive step towards a fully digital tolling system on India's national highways.

Frequently Asked Questions

Q: Why will cash toll payments cost double on Indian national highways from November 15, 2025?
The government is making cash payments cost double to encourage drivers to use digital payment methods like FASTag or UPI. This aims to make toll collection faster and reduce traffic jams.
Q: How much will FASTag users pay for tolls from November 15, 2025?
Drivers with a valid FASTag will continue to pay the normal, standard toll fee. FASTag remains the cheapest and easiest way to pay.
Q: What is the new toll charge for drivers using UPI from November 15, 2025?
Drivers who use UPI to pay tolls, but do not have a FASTag, will pay 1.25 times the normal toll rate. This is less than the double penalty for cash.
Q: What happens if I pay toll in cash on Indian national highways after November 15, 2025?
If you pay your toll using cash and do not have a valid FASTag, you will be charged double the normal toll rate. This is the highest penalty.
Q: When do these new toll payment rules start in India?
These new rules for toll payments on national highways will begin on November 15, 2025. This gives drivers time to switch to digital payment methods.
Q: What is the main goal of changing the toll payment rules?
The main goal is to make toll collection faster, reduce traffic jams at toll plazas, and encourage more people to use digital payment systems like FASTag and UPI, aligning with India's digital goals.