India Mandates Digital Toll Payments: Cash Payments to End by April 10
FASTag or pay more: No cash tolls, UPI costs 25% extra, ID waivers end
Business Standard
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Starting April 10, 2024, cash payments at highway toll plazas in India will be prohibited, requiring all motorists to use digital payment methods like FASTag. This change aims to reduce congestion and streamline toll collection, imposing higher fees for non-compliance and eliminating informal toll exemptions.
- 01Cash payments at toll plazas will cease from April 10, 2024.
- 02Motorists must use FASTag or face a 25% surcharge with UPI payments.
- 03Non-compliance may lead to penalties, including vehicle removal and double toll charges.
- 04Exemptions for tolls are now strictly linked to official vehicles only.
- 05An annual FASTag pass is available for frequent travelers at ₹3,075 (approximately $37 USD).
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The Indian government has announced that cash payments at highway toll plazas will be completely phased out starting April 10, 2024. This decision, mandated by the Ministry of Road Transport and Highways (MoRTH), requires all toll transactions to be conducted digitally, primarily through FASTag or other electronic payment methods. The move aims to reduce congestion and delays at toll booths, which have been a persistent issue for highway users. For motorists without a valid FASTag, tolls can still be paid via Unified Payments Interface (UPI), but at a 25% higher cost. Failure to comply with digital payment methods may result in penalties, including vehicle removal and double toll charges. Additionally, the new rules eliminate informal toll exemptions that allowed certain individuals to bypass fees, now strictly linking exemptions to official vehicles only. The government also introduced an annual FASTag pass priced at ₹3,075 (approximately $37 USD), beneficial for frequent travelers. This initiative is part of a broader strategy to transition towards seamless, barrier-free tolling systems across India.
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This transition to digital toll payments will streamline the toll collection process, potentially reducing waiting times at toll plazas for regular commuters.
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