India Offers Discounts for Non-FASTag Highway Toll Payments

The Government of India has introduced a new initiative aimed at easing toll payments for non-FASTag users on national highways. Starting from November 15, 2025, those who opt to pay their toll fees using the Unified Payments Interface (UPI) will receive a discount compared to cash transactions.

Under the revised rules, outlined in the amended National Highways Fee (Determination of Rates and Collection) Rules, 2008, non-FASTag users will incur a fee that is 1.25 times the applicable user fee for their vehicle category. In contrast, paying in cash requires these users to pay double the standard toll tax. This change is expected to particularly benefit private car owners who either lack FASTags or forget to recharge them, according to a senior official from the National Highways Authority of India (NHAI).

The implementation of this policy is a strategic move to encourage the adoption of digital payment methods. A press statement issued by the Ministry of Road Transport and Highways emphasized that the revised rules will foster greater transparency in toll operations and enhance the overall user experience.

While approximately 98% of toll payments on national highways are currently processed through FASTags, a small fraction of 2% remains reliant on cash transactions. The government believes that the new UPI payment option will not only streamline the process but also reduce the costs associated with cash handling and potential revenue leakages.

The NHAI’s focus on promoting digital payments aligns with broader efforts to modernize infrastructure and improve services for highway users across India. By making it easier for non-FASTag users to transition to a digital platform, the government aims to create a more efficient and user-friendly toll collection system on national highways.