India to Eliminate Cash Transactions at Toll Plazas Starting April 10
No cash on toll plazas from April 10; government moves to end ID-based exemptions
The Economic TimesImage: The Economic Times
Beginning April 10, cash payments at toll plazas in India will be replaced by mandatory digital transactions, aimed at reducing congestion and disputes. Vehicles without a valid FASTag will incur additional fees, while the government encourages the use of exempted FASTags and annual passes for smoother toll processing.
- 01Cash transactions at toll plazas will end on April 10.
- 02Digital payments will be mandatory, with UPI as an alternative for non-FASTag users.
- 03Vehicles without FASTags will pay 1.25 times the standard toll fee.
- 04Annual FASTag passes for private cars will cost ₹3,075 (roughly $37 USD).
- 05The initiative aims to modernize toll collection and reduce disputes.
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The Ministry of Road Transport and Highways in India has announced that starting April 10, cash transactions at toll plazas will be discontinued, mandating digital payments to enhance traffic flow and minimize disputes. Under the new system, all toll payments must be made electronically, and vehicles lacking a valid FASTag will still be allowed to pass but will be charged 1.25 times the standard toll fee via UPI (Unified Payments Interface). If payment is not made, authorities may deny entry or remove the vehicle under Rule 14 of the National Highways Fee Rules. Additionally, an e-notice may be issued for unpaid tolls, with failure to pay within three days resulting in double charges. The ministry is also promoting the use of “Exempted FASTags” and FASTag-based annual passes, priced at ₹3,075 (roughly $37 USD), allowing up to 200 toll crossings. This shift to a fully digital payment system is part of a broader effort to modernize toll collection and streamline processes, reducing altercations at toll booths and improving overall efficiency.
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This transition to digital payments will likely reduce waiting times at toll booths, benefiting daily commuters and travelers on national highways.
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