New FASTag rule: UPI payments to cost 1.25 times the regular fee

Starting November 15, 2025, the Ministry of Road Transport and Highways (MoRTH) will implement a revised toll collection structure across all National Highways, introducing new penalties for vehicles not using FASTag. The move is part of the government’s ongoing efforts to encourage digital payments, ease traffic flow at toll plazas, and ensure greater accountability among toll collection agencies.

As per the amended rules, vehicles without a valid FASTag will face a differentiated toll structure based on their mode of payment. Those who choose to pay in cash will now be charged double the standard toll fee, while those opting for digital payment methods such as UPI or other approved platforms will pay 1.25 times the regular fee. The aim, according to MoRTH, is to reduce dependence on cash while still offering a transitional digital alternative for users yet to adopt FASTag.

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In practice, this means if the normal toll fee for a passenger car using FASTag is Rs 100, a motorist paying in cash will now have to pay Rs 200, while someone using UPI or another digital payment method will be charged Rs 125. The rule is designed to discourage cash transactions  which slow down toll plaza operations  while providing a slightly costlier but convenient digital payment option for those whose vehicles may not yet be FASTag-enabled.

FASTag, an electronic toll collection system operated by the National Highways Authority of India (NHAI), was made mandatory for all four-wheelers from February 2021. It allows automatic toll deduction through a prepaid account linked to the vehicle’s tag, enabling faster movement through toll gates and eliminating the need for physical cash. As of mid-2025, NHAI reports that over 97 percent of toll transactions on National Highways are now digital, with more than 7 crore FASTags issued nationwide.

The earlier rule, which came into effect in February 2021, had already mandated that vehicles without FASTag pay double toll in cash, but at the time there were no clear provisions for digital payments other than FASTag. With digital wallets and UPI now widely used across India, the new system adds a more flexible and inclusive payment option while still penalising cash usage to prevent bottlenecks.

For motorists, the message is clear: ensure your FASTag is active, linked to your vehicle, and has sufficient balance before travelling. The FASTag can be easily recharged online via multiple platforms, including banks, Paytm, PhonePe, and NHAI’s MyFASTag app.

For those still relying on cash at toll booths, November 15 will mean steeper costs — double the toll, while digital users will benefit from reduced queues, faster passage, and slightly lower fees.