Vehicles queue at a toll plaza in India, with illuminated signs indicating "FASTag Only Lane - No Cash."
The Ministry of Road Transport and Highways will discontinue cash transactions at toll plazas starting April 10, mandating digital payments to streamline traffic flow and reduce congestion. This policy shift affects all toll plazas nationwide and is aimed at improving the efficiency of toll collection.
Under the new rules, vehicles without a FASTag will be required to pay 1.25 times the standard toll rate via UPI. Non-compliance will result in additional penalties, reinforcing the government’s push for digital tolling solutions. FASTag is an electronic toll collection system operated by the National Highways Authority of India (NHAI).
The move also ends ID-based exemptions, ensuring uniform toll collection and minimizing disputes. By eliminating cash transactions, the ministry anticipates a reduction in queues and enhanced transparency in toll operations.
This initiative reflects a broader trend towards digitalization in India’s infrastructure management, aligning with efforts to modernize transportation and reduce inefficiencies in the logistics sector. The transition is expected to impact private equity investments in road infrastructure and related technology sectors, as companies adapt to the new digital landscape.
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