The Indian government has introduced a new policy providing relief to drivers who travel on national highways without a FASTag or with a damaged FASTag. The new policy will reduce the penalty from double the toll tax to 1.25 times the toll for those making payments via UPI. Previously, those without a valid FASTag were required to pay double the toll in cash at toll plazas. This reform is part of the government’s broader push to encourage digital payments.
The government is amending the National Highways Fee (Determination of Rates and Collection) Rules, 2008. This aims to reduce cash-based transactions on highways and encourage digital payment adoption. The government’s statement highlights that this change is intended to promote digital payments and eliminate cash transactions. Consequently, vehicles without a valid FASTag will face the double toll charge when paying in cash. However, UPI users will only be charged 1.25 times the toll amount.
Illustrative example:
* Normal toll: Rs 100
* FASTag payment: Rs 100
* Cash payment: Rs 200
* UPI payment: Rs 125
Therefore, if you do not possess a FASTag or if it is faulty, you can save approximately Rs 75 by utilizing UPI. This initiative seeks to boost digital transactions and mitigate traffic congestion at toll booths.
The government believes that this change will streamline toll collection processes, making them faster and more transparent. It will also cut down on waiting times for motorists at toll plazas. The updated rules are designed to benefit both commuters and the government by enhancing the efficiency and transparency of toll collection procedures.
The new regulation will go into effect on November 15, 2025, across all national highway toll plazas nationwide. The government’s long-term objective is to achieve a cashless and fully digital tolling system across the country, making highway travel simpler and quicker.
