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“New Toll Rules: Digital Pay Bonus for Non-FASTag Drivers”

RR Team, October 5, 2025October 5, 2025
The Government of India has announced a new amendment to the National Highways Fee (Determination of Rates and Collection) Rules, 2008, aiming to incentivize digital payments at toll plazas. The National Highways Fee (Third Amendment) Rules, 2025 will come into effect from November 15, 2025, introducing differential toll rates for Non-FASTag users based on the mode of payment.

Under the new framework, vehicles entering a toll plaza without a valid FASTag will face a cash payment penalty. If a non-FASTag user pays the fee in cash, they will be charged twice the standard toll fee. In contrast, payment through digital channels like the Unified Payments Interface (UPI) will attract only 1.25 times the standard fee. For example, a ₹100 toll payable via FASTag will cost ₹200 in cash but only ₹125 via UPI.

Boosting Digital Transactions on Highways

The amendment aligns with the government’s broader push for digital payment adoption and transparency in toll collection. By incentivizing UPI payments, authorities aim to reduce congestion, eliminate long cash queues, and make highway commuting more efficient for travelers.

Officials highlight that this change will modernize toll operations, strengthen fee collection mechanisms, and provide an improved user experience. It also reflects India’s ongoing effort to leverage technology for smart highway management.

Implications for Road Users

For commuters who have not yet adopted FASTag, this rule introduces a clear financial incentive to switch to digital payments. While cash payments will become significantly more expensive, UPI users will enjoy a cost advantage, promoting seamless travel and quicker toll transactions.

Experts note that this step is consistent with previous government initiatives to reduce cash dependency and facilitate smoother traffic flow across national highways. The differential fee structure is expected to encourage widespread FASTag adoption and reduce manual toll operations.

Government and Public Response

The Ministry of Road Transport and Highways (MoRTH) has urged commuters to install FASTags or prepare for UPI payments to avoid paying higher fees. Social media reactions suggest that while some drivers are concerned about the upfront investment in FASTag, most welcome the convenience of reduced digital tolls.

The change has also drawn attention from digital payment platforms and banks, who are preparing to handle increased UPI traffic at toll plazas. This is expected to create a smoother and faster payment ecosystem across highways nationwide.

In summary, the upcoming toll rules mark a significant step in India’s digital transformation journey. With higher charges for cash payments and discounted rates for UPI, the government expects a smooth transition to digital-only tolling, benefiting commuters, authorities, and the economy alike.

News ##IndiaDigital PaymentsFASTagMoRTHNational HighwaysTollUPI

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