India bans cash at toll plazas from April 10
Fleet managers must install FASTag or pay 1.25× UPI tolls
Change
India discontinued cash payments at national highway toll plazas effective April 10, mandating electronic toll collection; vehicles without FASTag (radio-frequency identification tag for electronic toll collection) must pay 1.25 times the toll via Unified Payments Interface (UPI), unpaid dues trigger e-notices and double charges after three days and may lead to denial or removal under Rule 14 of the National Highways Fee Rules.
Why it matters
Manual cash-handling at national toll booths is no longer permitted, forcing operations teams to replace cash workflows with electronic payment and queuing procedures. Government departments and exempt entities must secure Exempted FASTags or FASTag-based annual passes to retain any toll exemptions or face standard charging and enforcement for non-payment.
Implications
- — Fleet managers at logistics and commercial transport companies in India must fit and verify a working FASTag on every vehicle immediately — drivers without a functioning FASTag will be charged 1.25× the toll via UPI, may receive e-notices for unpaid dues, and risk vehicle denial or removal under Rule 14 if payment fails.
- — Government department fleet managers and authorised exempt entities in India must obtain Exempted FASTags or purchase FASTag-based annual passes before April 10 — otherwise their vehicles will be treated as non-exempt, charged standard tolls, and subject to e-notices and doubled charges after three days for unpaid dues.
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Source
View on Economic Times