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Toll Rates to Vary by Payment Mode As Government Updates Highway Fee Rules
New Toll Plaza Rule: The Government of India is implementing the National Highways Fee (Determination of Rates and Collection) (Third Amendment) Rules, 2025, effective November 15, 2025. This amendment establishes tiered toll rates to encourage digital payments at toll plazas. Cash payments will be charged at double the standard rate, while UPI payments will incur a 1.25 times fee. Vehicles using FASTags will continue to pay the normal rate. The initiative aims to reduce cash transactions and enhance the efficiency of toll collection on national highways.
Keshav Rajput
Updated Oct 10, 2025, 04:23 PM IST
Cash or UPI? Government Revises Toll Rates to Promote Digital Payments
The Government of India has notified the National Highways Fee (Determination of Rates and Collection) (Third Amendment) Rules, 2025. Issued by the Ministry of Road Transport and Highways (MoRTH), the rule will take effect on November 15, 2025. This amendment introduces tiered toll charges based on payment methods to further promote digital transactions at national highway toll plazas.
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Under the new system, the toll amount will vary depending on the mode of payment used by vehicle owners:
- Cash Payments: Vehicles paying in cash will be charged twice (2x) the regular toll rate for their category.
- UPI Payments: Payments made through the Unified Payments Interface (UPI) will attract 1.25 times the standard toll fee.
- FASTag Payments: Vehicles using valid FASTags will continue to pay the standard toll rate.
For example, if a car’s normal toll fee is Rs 100 using FASTag, the same vehicle will pay Rs 125 through UPI and Rs 200 in cash.
Background on FASTag Implementation
FASTag is an RFID-based electronic toll collection system, was first introduced in India on a pilot basis in 2014 on the Ahmedabad-Mumbai highway, overseeing its development. It became mandatory for all national highway toll plazas starting December 15, 2019, following a government notification and was extended to all vehicles from January 1, 2021, under amendments to the Central Motor Vehicles Rules.
Focus on Digital Toll Collection
By setting higher charges for cash and slightly higher fees for UPI, the government seeks to make digital payments and FASTag use more common across national highways. The amendment aims to reduce cash-based transactions at toll plazas and improve the speed and accuracy of toll collection.
Recently, MoRTH also introduced a new FASTag-based annual toll pass for private, non-commercial vehicles such as cars, jeeps and vans, priced at Rs 3,000, the pass remains valid for one year from the date of activation or up to 200 trips, whichever comes first.
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