No more cash: New FASTag rules take effect today: 25% surcharge for UPI and double fees for blacklisted tags

India officially shifts to a "zero-cash" highway system starting today, April 10, 2026. Drivers without a functional FASTag face a 25% surcharge via UPI and potential double fines. Check the latest NHAI annual pass rates and new penalty guidelines here.

Starting today (April 10, 2026), tolls on national highways throughout India will undergo vast changes regarding collection. The Ministry of Road Transport and Highways (MoRTH) has enacted a "Zero-Cash" policy and is imposing more significant penalties on vehicles using fasteners that do not comply with operating standards.

Goodbye cash lanes; Charges of 25% over UPI payments

To increase efficiency at toll plazas, the Government of India is ordering the total closure of cash counters throughout all toll plazas in the country. Even drivers without a FASTag will be able to pass through tolls as long as they pay via UPI (Unified Payment System). However, they must do so with a surcharge of 25% of the normal toll rate.

For example, the cost for a trip on the toll road is ₹100; if you don't have an active FASTag and were to pay using UPI, your total would be to pay ₹125, which includes the additional 25% surcharge. The purpose of this surcharge is to discourage manual intervention and encourage 100% of vehicles using electronic tolling (ETC).

Severe actions taken against blacklisted vehicle FASTags

This new system will also target FASTags that are "blacklisted" or have insufficient funds for the purpose. Under this new set of guidelines.

Motorists who utilise the FASTag lane with a blacklisted FASTag or insufficient balance may be charged double the toll amount.

Motorists will start receiving e-notices by SMS and e-mail as violation notices for violations of toll plaza rules.

The time frame to settle any outstanding fines or to dispute amounts is three days to prevent further legal actions and blacklisting of the vehicle.

Changes to pricing for annual FASTag passes

NHAI has also made revisions to the pricing of annual FASTags; for the FY 2026-27, an annual toll pass for private/non-commercial vehicle tolls was raised from INR 3000 to INR 3075. The permits for these passes will be limited to vehicles that have a valid and operational FASTAG.

Seamless travel is the goal

The primary objective of these protocols, stated by officials from the ministry, is to create seamless movement of traffic. The NHAI wants to completely remove cash lanes from their tolls so that the average wait time at tolls will drop to nearly zero, thus reducing the amount of fuel and carbon emissions from idling in long lines. 

All drivers are encouraged to check their FASTag balance and ensure KYC is current prior to attempting any highways to avoid difficulties with paying tolls.

Crucial travel gadgets for travelling on an important road

With toll booths becoming entirely automated with rewards and other portals for charging, getting your vehicle ready with reliable technology is becoming more crucial than ever.

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