In a move to ease the burden on motorists, the central government has introduced a new rule for those traveling on national highways without a FASTag or with a non-functional one. Drivers will no longer face the penalty of paying double the toll fee. Starting from November 15, 2025, those using UPI for payments will be charged 1.25 times the standard toll amount. Previously, vehicles without a valid FASTag were required to pay double the toll in cash at toll plazas. This initiative is part of a broader effort to boost digital payments.
The government’s decision involves amendments to the National Highways Fee (Determination of Rates and Collection) Rules, 2008. The aim is to reduce cash transactions on highways and promote the use of digital payment methods. The government clarified that the revision is designed to encourage digital payments and eliminate cash transactions. Consequently, vehicles arriving at toll plazas without a valid FASTag will be subject to double the toll fee if they pay in cash. However, those opting for UPI payments will only incur a charge of 1.25 times the toll amount.
Consider the following example:
* Standard toll fee: Rs 100
* Payment with FASTag: Rs 100
* Cash payment: Rs 200
* UPI payment: Rs 125
This means that even if your FASTag is absent or faulty, using UPI can save you approximately Rs 75. The move is intended to promote digital transactions and reduce congestion at toll plazas.
The government also believes the new rule will make the toll collection system more transparent and efficient. It will save time otherwise spent on cash transactions and reduce waiting times for drivers at toll booths. The new regulations aim to provide convenience to travelers while simultaneously improving the government’s toll collection records and transparency.
The new rule will be implemented at all national highway toll plazas across the country starting November 15, 2025. The long-term goal is to transition all toll lanes to a cashless and fully digital system, creating a smoother and faster highway travel experience across India.