Cashless Toll System India: A major change was about to come for travelers across the country, but for now, it will have to wait a little longer. The central government has postponed its plan to implement a completely cashless payment system at toll plazas for a month. This new system will now be implemented on May 1st.
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Cashless Toll System India: Travelers across the country were supposed to experience a major change starting April 1, 2026, but for now, it will have to wait a little longer. The central government has postponed its plan to implement a completely cashless payment system at toll plazas by a month. This new system will now be implemented from May 1, eliminating cash payments and requiring passengers to pay digitally.
According to a report in Dainik Hindustan, a cashless toll tax system was supposed to be implemented at toll plazas across the country starting April 1, 2026, but the central government has postponed this decision by a month. Under this new system, cash payments will be completely discontinued. If a vehicle’s FASTag is not working, passengers will be able to make online payments using UPI or QR code.
However, online payments will cost passengers 1.25 times the base toll rate. A senior official from the Ministry of Road Transport and Highways stated that the cashless toll system will now be implemented from May 1. Due to some technical reasons, this decision has been postponed for a month.
New rules for cashless payments
He said the government has introduced new rules to reduce cash payments at toll plazas. Now, anyone making online payments will incur an additional 25% processing fee.
According to the ministry’s new guidelines, if there is an error in toll deduction and the FASTag has sufficient balance, the vehicle will be allowed to pass free of charge. This means there will be no cost. Furthermore, refunds for incorrect deductions will now be available within 48 hours. Banks and toll agencies have been ordered to refund the wrongly deducted amount to the passenger’s account within the stipulated time. Failure to do so will result in a fine of ₹500 per day for the agency concerned. It should be noted that currently, refunds take 7 to 15 days to be processed.
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