Major Toll Update: Non-FASTag Vehicles Paying via UPI to Pay Only 1.25x Fee from November 15

The Indian Government has introduced a significant update to toll payment rules on national highways, aimed at promoting digital payments and reducing cash dependency. Under the new regulation announced by the Ministry of Road Transport and Highways (MoRTH), vehicles without a FASTag will face differential toll charges depending on their mode of payment. This rule will come into effect on November 15, 2025, offering a cheaper alternative for non-FASTag users who pay digitally.

The amendment is part of India’s broader goal to make highways more efficient, transparent, and digital-friendly, benefiting both everyday commuters and commercial transport operators. In this article, we explain what the new rule entails, why it matters, and how travelers can prepare.

Major Toll Update: Non-FASTag Vehicles Paying via UPI to Pay Only 1.25x Fee from November 15

What is FASTag and Why It Matters

FASTag is an electronic toll collection system based on Radio-Frequency Identification (RFID) technology. It allows vehicles to pay toll charges automatically without stopping, by deducting the amount from a linked prepaid or savings account.

FASTag was introduced to:

  • Reduce traffic congestion at toll plazas

  • Promote cashless and seamless transactions

  • Improve efficiency and transparency in toll collection

  • Reduce human error and revenue leakage

Over the years, FASTag adoption has grown rapidly, but a significant number of vehicles still operate without FASTag, relying on cash or digital payment options at toll booths.

What the New Rule States

The National Highways Fee (Determination of Rates and Collection) (Third Amendment) Rules, 2025 lays out the updated toll charges for non-FASTag vehicles:

  1. Cash Payments: Vehicles without a valid FASTag paying in cash will continue to pay double the regular toll fee.

  2. Digital Payments via UPI or Approved Methods: Non-FASTag vehicles paying through UPI or other approved digital channels will now pay 1.25 times the normal toll fee, instead of the earlier double charge applied to all non-FASTag users.

This differential approach encourages digital payments while continuing to incentivize FASTag adoption.

Example for Clarity

Assume a vehicle’s standard toll charge is ₹100:

  • With FASTag: ₹100 (regular fee)

  • Without FASTag, paying in cash: ₹200 (double)

  • Without FASTag, paying digitally via UPI: ₹125 (1.25x fee)

This simple change makes digital payments a more economical choice for travelers who do not yet have FASTag.

Why the Government Introduced This Change

The government’s decision is driven by several key objectives:

1. Promote Digital Payments

Digital payment methods like UPI, credit/debit cards, and mobile wallets are fast, secure, and traceable. By charging a lower fee for digital payments, the government encourages cashless transactions, in line with the Digital India initiative.

2. Reduce Congestion at Toll Plazas

Cash payments are slow and require manual handling of money and receipts. Digital payments, especially FASTag, allow vehicles to pass without stopping, reducing traffic bottlenecks and wait times.

3. Improve Transparency

Manual cash collection can sometimes result in errors or discrepancies. Digital payments are automatically recorded, ensuring a clear audit trail for toll authorities and minimizing revenue leakage.

4. Encourage FASTag Adoption

Although digital payments are now cheaper than cash, FASTag remains the most cost-effective and convenient option. Higher charges for cash and non-FASTag users reinforce the importance of FASTag for regular highway users.

Impact on Vehicle Owners

The new rule will affect all types of highway travelers, including private cars, commercial vehicles, and occasional commuters.

1. Private Vehicle Owners

  • Digital payment via UPI is now a cheaper alternative to paying in cash for non-FASTag users.

  • Cash payments remain more expensive, encouraging users to switch to digital or FASTag.

  • Frequent travelers benefit most from FASTag, which ensures hassle-free and cost-efficient toll payments.

2. Commercial Transport Operators

  • UPI payments reduce operating costs compared to cash payments.

  • Digital payment simplifies accounting and reporting.

  • Faster transactions at toll plazas improve delivery timelines and overall logistics efficiency.

3. Occasional Highway Users

  • Travelers who do not use FASTag regularly can now pay digitally at 1.25x the toll fee instead of paying double.

  • Awareness and guidance at toll plazas, including QR codes for UPI payments, make it easy for occasional users to adapt.

Technology Behind the Rule

The success of this new rule depends on efficient digital infrastructure at toll plazas. Key features include:

  • QR Code Payments: Allowing quick UPI transactions.

  • Integration with Multiple Platforms: Including BHIM, Google Pay, PhonePe, and Paytm.

  • Instant Verification: Payments are confirmed immediately without human intervention.

  • Real-Time Tracking: Digital payments provide a secure record for both authorities and travelers.

This technology ensures that non-FASTag users can also enjoy secure, quick, and hassle-free payments.

Comparing FASTag, UPI, and Cash Payments

Payment Mode Toll Fee Convenience Speed Transparency
FASTag Regular Very High Very Fast High
Non-FASTag via UPI 1.25x High Fast High
Non-FASTag via Cash 2x Low Slow Low

The comparison clearly shows that digital payments offer a middle ground, combining convenience with lower costs.

How to Prepare for November 15

As the new rule comes into effect, travelers should take the following steps:

  1. Get a FASTag if you regularly travel on national highways.

  2. Ensure your FASTag is active and linked to a valid account.

  3. Familiarize yourself with UPI payments and carry a UPI-enabled app.

  4. Check for any vehicle-specific exemptions or special provisions.

Preparation ensures travelers can avoid extra charges and enjoy smooth journeys on highways.

Government’s Vision

This amendment aligns with the government’s long-term vision for smart, digital highways:

  • Full FASTag adoption across all national highways.

  • Integration of digital payments with traffic management systems.

  • Reduced human intervention, improving efficiency.

  • Enhanced commuter experience, minimizing congestion and wait times.

By promoting cashless toll payments, the government is creating a modernized, tech-enabled highway system benefiting all stakeholders.

FAQs

Q1. What happens if I pay cash after November 15?

  • You will be charged double the toll fee.

Q2. Can I pay via digital wallets other than UPI?

  • Yes, other approved digital methods are accepted, but UPI remains the most convenient.

Q3. Is FASTag mandatory?

  • FASTag is mandatory, but non-FASTag users can now pay digitally at 1.25x the fee.

Q4. Why not reduce all non-FASTag fees?

  • The differential charge encourages both FASTag adoption and digital payment usage.

Final Thoughts

The upcoming toll rule represents a practical step toward India’s digital highway transformation. While it provides relief for non-FASTag users paying digitally, FASTag remains the most cost-effective and convenient option.

For commuters and commercial operators, the 1.25x fee for UPI payments is a smart alternative to cash, saving both time and money. With the rule coming into effect on November 15, 2025, adopting digital payments or FASTag is no longer optional—it’s a future-ready choice for anyone traveling India’s national highways.

This change is more than a payment update; it’s about shaping the future of India’s highways, reducing congestion, improving transparency, and embracing technology for faster and smoother journeys.

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