NHAI Moves to Eliminate Cash Payments at National Highway Toll Plazas
Commuters traveling on national highways across India may soon find themselves unable to pay user fees in cash at toll plazas. The National Highways Authority of India (NHAI) has announced it is "contemplating" completely discontinuing cash transactions at all NH fee plazas starting from April 1. This move would mandate reliance entirely on digital payment modes, specifically FASTag and Unified Payments Interface (UPI).
Current Payment Norms and Penalties
Under the existing regulations, vehicles that pass through a toll plaza without a valid and functional FASTag are subject to a penalty. If the payment is made in cash, these vehicles are charged twice the applicable toll amount. For those opting to pay via UPI, the charge is 1.25 times the user fee for the relevant vehicle category.
An official explained the rationale behind this shift, stating, "The payment through UPI was introduced in November as an alternative to discourage cash payment, which was then around 2% of all toll collection. By now, cash payments have dropped to almost 1%, which is half of what was collected in cash just months back. All toll plazas have a UPI system for making payments."
Government's Push for Digital Transactions
While cash payments are likely to be disallowed from April, the government is actively addressing related issues. One key area under consideration is the penalties for overloading, which are currently paid largely in cash. The official added, "A proposal is under consideration for rationalising and facilitating cashless overloading penalty payments."
Benefits of the Transition
In a formal statement, NHAI highlighted the advantages of moving to a cashless system. "The proposed measure is aimed at consolidating the gains achieved in Electronic Toll Collection and strengthening the efficiency and reliability of fee plaza operations. The transition will help to enhance 'Ease of Commuting' for NH users by improving lane throughput, reducing congestion at fee plazas and bringing greater consistency and transparency in toll transactions."
Plaza-level assessments have indicated that cash-based payments contribute significantly to operational challenges. These include increased congestion, longer waiting times during peak traffic periods, and a higher incidence of transaction-related disputes. By eliminating cash, NHAI aims to streamline operations and provide a smoother travel experience for highway users.
This initiative aligns with broader national efforts to promote digital payments and improve infrastructure efficiency. Commuters are advised to ensure their FASTag accounts are active and to familiarize themselves with UPI options to avoid disruptions once the new policy takes effect.
