In a landmark move, the Indian government has amended toll payment rules for vehicles without a valid FASTag. Effective November 15, 2025, non-FASTag users will have to pay 1.25 times the regular toll fee if they pay via UPI (digital payments). However, those opting to pay in cash will continue to be charged twice the standard toll rate.
This change is part of efforts to encourage digital payments and reduce cash transactions at National Highway toll plazas. The amended rule stems from the Third Amendment Rules, 2025 to the National Highways Fee (Determination of Rates and Collection) Rules, 2008.
Background: FASTag Annual Pass & Toll Reforms
- The FASTag Annual Pass facility has already been implemented at about 1,150+ toll plazas across National Highways and Expressways. It allows prepayment or subscription to simplify toll payments.
- On its launch (Independence Day), the Annual Pass saw around 1.4 lakh buyers, indicating strong demand.
- Previously, vehicles without FASTag faced a 100% penalty — i.e. double toll — when paying in cash. This new rule softens penalties for digital payment while still discouraging non-FASTag usage.
How the New Toll Rule Works
Scenario | Toll Charge for Non-FASTag Users |
---|---|
Payment via UPI | 1.25 × regular toll |
Payment via Cash / physical payment | 2.0 × regular toll |
Example: If a valid FASTag user pays ₹100 at a toll plaza, a non-FASTag user would pay ₹125 if paying via UPI, and ₹200 if paying in cash.
The motive is clear: incentivize digital payments, reduce cash handling, and streamline toll operations.
Impacts & Implications
For Motorists Without FASTag
- They now have the option to pay via UPI at slightly higher cost instead of being forced into cash, which is costlier under the old rules.
- Cash payments for non-FASTag users become even more expensive (2× toll), creating a strong incentive to adopt FASTag or use UPI.
For Toll Plazas & Toll Collection
- Digital transactions reduce friction, queue times, and errors in toll collection.
- Many plazas may need to upgrade infrastructure (QR / UPI readers) to facilitate UPI payments smoothly.
- Dispute resolution and system integration will become more critical, as non-FASTag users may contest charges due to system errors.
For National Highway Users
- Frequent travellers who did not adopt FASTag have a window to pay digitally at lower penalty (1.25×) before being severely penalized via cash.
- Encourages adoption of FASTag across vehicles (private, commercial) in India.
Things to Note & Caveats
- This rule applies only on National Highways / Expressways under NHAI / central toll plazas; state highways or private toll roads may have different rules.
- Vehicle must have a functional FASTag. If the FASTag is invalid, blacklisted, or non-functional, the same penalty may apply.
- Implementation logistics: Toll booths need to support UPI fallback and have systems to detect non-FASTag vehicles seamlessly.
- The change gives non-FASTag users a chance to use UPI at 1.25× before being pushed to cash-only penalty.
Final Take
Starting November 15, 2025, non-FASTag vehicle owners will need to pay 1.25× toll fees via UPI, or face 2× fees via cash at National Highway toll plazas. This is a strategic push toward digital payment adoption and smoother toll collection. Motorists should ensure they have a valid, functional FASTag or be prepared to use UPI for their toll payments to avoid steep penalties and delays.