New FASTag Rules: UPI Payments At National Highway Tolls To Incur 1.25x Fee From Nov 15

The Ministry of Road Transport and Highways announced in a statement that will be seen as a significant step to incentivise digital payments and eliminate cash transactions at the user fee plazas on National Highways for non-FASTag users.

"Under the new rule, vehicles entering a fee plaza without a valid, functional FASTag will be charged twice the applicable user fee if it the payment is made in cash. Such users who opt to pay the fee via the Unified Payment Interface (UPI), will be charged only 1.25 times the applicable user fee for that category of the vehicle," it said.

For example, if a toll fee is Rs 100 with the FASTag, it will rise to Rs 200 if paid in cash. However, if the same payment is done through UPI, the toll will be Rs 125.

The government said the revised rules will encourage the adoption of digital payments, enhance transparency in toll operations, and improve the overall user experience on National Highways.

This rule could mean shorter queues and quicker travel times at toll plazas. Drivers who still avoid FASTag may find UPI a more affordable choice compared to cash.

However, FASTag continues to remain the cheapest and fastest option. Those paying with UPI will pay only 1.25 times the regular toll, which is less than the double charge for paying cash, making it a convenient fallback, especially if their FASTag is not working. Yet, for a smooth experience and lowest cost, FASTag remains the smartest option for regular highway users.