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India Moves to Fully Digital Toll System on National Highways Using FASTag and UPI from 2026

India is moving toward a fully digital toll collection system on National Highways, allowing payments exclusively through FASTag and UPI starting April 11, 2026. The initiative is designed to improve transparency, reduce traffic congestion, and enhance overall convenience for commuters. However, the rollout has been temporarily paused in view of ongoing elections.

Digital-Only Toll Collection Across India

The government has mandated that all vehicles must use digital payment methods for toll transactions, primarily through:

FASTag

Unified Payments Interface (UPI)

This marks a major shift from the earlier hybrid model (cash and digital payments) to a fully digital tolling ecosystem. The initiative is part of India’s broader vision to develop a smart, technology-driven transport infrastructure.

Key Objectives of the Initiative

The transition to digital-only toll collection aims to achieve several key goals:

1. Improved Efficiency

Enables faster movement of vehicles at toll plazas

Reduces waiting time and traffic congestion

2. Enhanced Transparency

Minimizes cash handling and potential leakages

Ensures accurate and traceable digital transactions

3. Promotion of the Digital Economy

Encourages wider adoption of digital payment systems

Strengthens India’s fintech and digital infrastructure ecosystem

Exemptions in Certain States

Due to the Model Code of Conduct (MCC) enforced during elections, the rollout has been temporarily withheld in select states and union territories, including:

Tamil Nadu

Kerala

Assam

West Bengal

Puducherry

These restrictions are in place as the Election Commission of India has announced elections in these regions, limiting the introduction of new policy implementations during this period.

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