India has introduced a nationwide shift to fully digital toll payments across national highway fee plazas, requiring road users to pay charges exclusively through electronic systems such as FASTag or the Unified Payments Interface (UPI). The measure, implemented from 10 April 2026, is intended to improve efficiency and transparency in toll collection. However, the change has been temporarily deferred in several states and a union territory where election rules are currently in force.
Digital Payments Become Mandatory at National Highway Toll Plazas
According to an official announcement by the Government of India’s Ministry of Road Transport and Highways, all user fee payments at national highway toll plazas are now processed exclusively through digital platforms such as FASTag or UPI. Details of the policy were outlined in a government press release issued on 11 April 2026.
The change is designed to streamline toll operations by reducing cash handling, minimising delays at toll gates, and improving the transparency of transactions. FASTag, which uses radio-frequency identification technology to automatically deduct toll payments from linked accounts, has already been widely deployed across India’s highway network. The addition of UPI provides motorists with another widely used digital payment option.
India has been expanding digital infrastructure across multiple sectors to improve service delivery and administrative efficiency. Similar technology-driven initiatives are reshaping other transport systems, including efforts where AI and digital technologies are improving rail travel services, reflecting a broader policy focus on modernising national transport networks.
Temporary Exemptions in States Under Election Code
The digital-only payment requirement has not yet been implemented in Tamil Nadu, Kerala, Assam and West Bengal, as well as the union territory of Puducherry. These areas are currently operating under the Model Code of Conduct due to ongoing electoral processes.
Under India’s election rules, certain government policy actions may be deferred to ensure administrative neutrality during the electoral period. As a result, the transition to exclusive digital toll payments in these regions will proceed once the election-related restrictions are lifted.
Part of a Wider Digital Governance Agenda
The adoption of fully digital toll payments aligns with broader government efforts to strengthen digital public infrastructure and expand the use of electronic payment systems. National policy initiatives increasingly emphasise digital technologies as tools to improve efficiency, transparency and accountability in public services.
Recent policy measures, including fiscal support for emerging technologies outlined in India’s budget strategy for AI, semiconductors and IT, highlight the government’s commitment to expanding digital capabilities across sectors. In the transport context, digital tolling is expected to reduce congestion at toll plazas while enabling more consistent monitoring of highway usage.
By mandating electronic payments at toll plazas nationwide, authorities aim to consolidate previous digital tolling initiatives into a uniform system. Policymakers expect the move to simplify the payment process for motorists while strengthening oversight and operational efficiency across India’s national highway network.
