New toll fee rules: UPI users get a discount, cash payments costlier for non-FASTag vehicles

In a significant step to incentivise digital payments and eliminate cash transactions at the user fee plazas on National Highways for Non-FASTag users, the Government of India has amended the National Highways Fee (Determination of Rates and Collection) Rules, 2008.

Under the new rule, vehicles entering a fee plaza without a valid, functional FASTag will be charged twice the applicable user fee if the fee payment is made in cash.

For example, if a vehicle needs to pay a user fee of ₹100 through a valid FASTag, the fee will be ₹200 if paid in cash and ₹125, if paid via UPI.

This amendment aims to strengthen the fee collection process, enhance transparency in toll collection, and promote ease of commuting for the National Highway users. This notification will come into effect from November 15, 2025.

The latest amendment to the National Highway Fee (Determination of Rates and Collection) Rules, 2008, reflects the Government of India’s commitment to leveraging technology for efficient toll collection and reducing congestion at the toll plazas. ​The revised rules will encourage the adoption of digital payments, enhance transparency in toll operations, and improve the overall user experience on National Highways.

• Cost savings for UPI users

• Digital payments via UPI are typically quicker than cash, reducing time spent at toll booths. This means less waiting, smoother traffic flow, and reduced congestion, especially for those without FASTags.

• UPI allows for real-time payments via smartphones, eliminating the need to carry cash or search for change.

• Users get instant payment confirmation on their phones.

Users who adopt UPI over cash at toll plazas will enjoy lower fees, faster transactions, and a more convenient and transparent experience. It's a win-win for both individual commuters and the larger digital infrastructure of the country.