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New FASTag rule: UPI payments to attract 25 percent higher fee

The Ministry of Road Transport & Highways (MoRTH) has revised toll collection norms across India’s highways, introducing higher fees for vehicles not using FASTag. Earlier, non-FASTag users were uniformly charged double the toll amount, regardless of payment method. Now, UPI users will pay 1.25 times, while cash users will continue to pay twice the FASTag rate. The move aims to cut cash use, promote digital payments and ease congestion at toll plazas.

  1. Move aims to reduce long queues caused by cash handling
  2. Earlier, all non-FASTag users were charged twice the toll amount
  3. Over 7 crore FASTags have been issued 

Revised structure for non-FASTag users

UPI payments introduced as a middle ground between FASTag and cash.

Under the new rules, vehicles without a FASTag will face a tiered toll system: 1.25 times the regular fee for UPI or other digital payments and double the toll for cash transactions. The government says this setup offers a convenient digital option for those yet to switch to FASTag while ensuring that cash payments, which slow down the traffic, are strongly discouraged.

Why the change?

A move to make toll plazas quicker and smarter.

The revised structure is designed to promote smoother traffic flow and reduce congestion at toll plazas. By nudging drivers toward digital transactions, MoRTH hopes to eliminate long queues caused by cash handling and improve transparency in toll collection across the national highway network.

FASTag still the smartest way to go

97 percent of tolls are already digital.

FASTag remains the most efficient and cost-effective way to pay tolls. Over 7 crore FASTags have been issued, and 97 percent of toll transactions on national highways are already digital. Motorists are advised to ensure their FASTag is active, correctly linked and recharged in advance, helping them avoid extra costs and enjoy uninterrupted highway travel.

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