Government Amends Toll Collection Rules to Promote Digital Payments on National Highways

The Government of India has notified the National Highways Fee (Determination of Rates and Collection) (Third Amendment) Rules, 2025, introducing new measures to encourage digital transactions at toll plazas. The amended rules will come into effect from November 15, 2025.

Under the new provisions, vehicles entering toll plazas without a valid or functional FASTag will face a differential fee structure based on their mode of payment. Non-FASTag users who pay in cash will be charged twice the applicable user fee, while those opting to pay via Unified Payments Interface (UPI) will be charged 1.25 times the standard fee.

For instance, if the regular toll for a vehicle is ₹100 through a valid FASTag, the same vehicle will pay ₹200 in cash or ₹125 when paying digitally via UPI.

The Ministry of Road Transport and Highways stated that the amendment aims to incentivize digital payments, reduce cash handling, and ensure faster, more transparent toll collection across the National Highways network. The new framework is also expected to ease traffic congestion at plazas and enhance commuter convenience.

The move reflects the government’s continued push toward technology-driven tolling systems, building on the success of FASTag adoption and aligning with the broader vision of a cashless and efficient transport infrastructure.