Big Relief for Drivers! Digital Toll Payment Without FASTag Now Cheaper Than Cash

Published On: October 7, 2025

India’s Ministry of Road Transport and Highways has rolled out a major update that brings huge relief to vehicle owners and highway commuters. Starting November 15, 2025, drivers without a FASTag can now pay tolls digitally—without paying double charges as before across India.

This new rule is part of the government’s latest move to modernize toll collection, promote digital payments, and ease highway traffic congestion, especially in regions like Jammu & Kashmir, where national highway travel plays a key role in daily transport and tourism.

Digital Toll Payments Without FASTag — What Changes From November 15

The National Highways Fee (Determination of Rates and Collection) (Third Amendment) Rules, 2025 will take effect across India from November 15, 2025.

Under the new system:

Vehicles with FASTag: Pay the standard toll rate.
Vehicles without FASTag paying in cash: Will still pay double the toll amount.
Vehicles without FASTag using digital payments (UPI or other apps): Will now pay only 1.25 times the toll, instead of double.

Example of the New Toll System in India | FASTag

If the normal toll for a car is ₹100:

FASTag users will continue to pay ₹100.
Cash payers will pay ₹200.
Digital payment users (via UPI, Paytm, etc.) will now pay ₹125.

This marks a significant change from the earlier system where both cash and UPI users were charged double the amount.

Why the Government Introduced This Change

The government aims to encourage digital toll payments and discourage cash transactions at toll plazas. Cash handling causes longer queues, delays, and leakages in toll collection.

By offering reduced toll rates for digital payers, the Ministry hopes to:

Promote cashless transactions on highways.
Improve traffic flow by reducing waiting time.
Enhance transparency and efficiency in toll operations.
Support the Digital India initiative through widespread use of UPI and electronic payments.

The decision is expected to reduce congestion and long queues at toll plazas, particularly on busy routes in Jammu, Udhampur, Ramban, and Srinagar highways.

Drivers who haven’t yet installed a FASTag will find UPI a more affordable and convenient alternative to cash. However, FASTag remains the fastest and cheapest way to pay tolls and pass through barriers seamlessly.

Local transporters and frequent travelers in Jammu & Kashmir have welcomed this move, saying it will save both time and money for non-FASTag users while still encouraging a shift toward digital tolling.

Government’s Vision: Fully Digital Tolling in India

According to officials from the Ministry of Road Transport and Highways, this step is a part of the broader plan to introduce GPS-based toll collection systems in the near future. The goal is to eliminate toll booths altogether and make travel completely barrier-free and time-efficient.

The ministry also stated that the new digital payment incentives will help in smoother highway operations, reduce cash dependency, and enhance overall commuter experience—especially on long routes through hilly terrain and tunnels of Jammu & Kashmir.

The new toll payment rules from November 15, 2025, represent a strong push toward digital India and smarter highways. By allowing UPI-based toll payments at 1.25 times the normal fee, the government is bridging the gap between cash users and FASTag holders, ensuring smoother and faster journeys for all.

Whether you’re driving through Jammu’s highway stretches, the Banihal tunnels, or Kashmir’s scenic routes, adopting digital toll payments can now save you both money and time.