How toll policies are redefining the highway journeys

FASTag Annual Pass, push for digital payments change the user experience

GN Bureau | January 14, 2026


#NHAI   #Infrastructure   #Highway   #MoRTH  


With the phenomenal growth in National Highways, queues at toll plazas used to affect commuters. However, over the last decade, tolling has undergone a major technological transformation, bringing faster movement and significant ease for road users. Building on this progress, year 2025 saw further people-centric reforms and innovations that have quietly made highway travel even smoother and more efficient.

The Ministry of Road Transport and Highways (MoRTH), along with the National Highway Authority of India (NHAI), has worked diligently on practical solutions designed to reduce commuters’ genuine concerns, says a PIB Feature.

FASTag Annual Pass

With FASTag Annual Pass, launched on August 15, 2025, a user needs to pay ₹3,000, to get 200 toll trips or one full year of travel, whichever comes first, across 1,159 toll plazas nationwide.

“I recently opted for the FASTag Annual Pass as I travel daily from Unnao to Lucknow. Earlier, I used to spend around Rs 90 every day on toll charges. Now, with the Annual Pass, my daily cost has come down to just Rs 30. Time is also saved as I can cross the toll plaza in hardly a minute,” said a resident of Kushehri in Unnao.

Similar relief is being felt by frequent highway users in other parts of the country as well. For many, the Annual Pass has not only reduced daily travel costs but has also made regular commutes stress-free.

"I have to visit Chandigarh on regular basis. Earlier I had to spent overall Rs 150 for a round trip. But after making the yearly annual pass my cost has been reduced to just Rs 30, which is great relief for me," stated a Haryana resident, who lives in Yamuna Nagar.

Moreover, the FASTag Annual Pass has turned unpredictable monthly toll expenses into a fixed, stress-free cost, giving daily commuters certainty, savings, and smoother travel throughout the year, without worrying much about constantly recharging their FASTag.

In just a few months, more than 40 lakh Annual Passes have already been sold, with adoption touching nearly 20% of car users, a testament to the fact that affordability and convenience can go hand in hand.

Encouraging digital payments
At toll plazas, cash was once the slowest and messiest option. Long queues, change issues, and disputes were common. To fix this, MoRTH had earlier introduced a 2x charge for non-FASTag payments, which made payments costly for some users. Now, this has been relaxed to just 1.25x, for UPI payments making it far more affordable and a real alternative to cash. Earlier, paying cash meant waiting and sometimes arguments. Today, with the discount from 2x to 1.25x on UPI payments, commuters just need to scan, pay, and move — making digital payments simple, quick, and worthwhile.

Between November 15 and December 10, 2025, over 15 lakh UPI transactions were recorded at toll plazas, totalling ₹19.44 crore. Moreover, cash collection has dropped by 25%, easing congestion and boosting transparency.

Currently, 98% of vehicles already use FASTag, and the remaining gap is steadily closing, not just through penalties, but through user-friendly incentives.

No more stopping: The future of tolling has arrived
For truck drivers stopping and restarting at toll plazas meant fuel loss, fatigue, and delays. Every such stop costs diesel and time. And on long routes, it adds up.

That frustration is now being addressed through India’s first barrier-free Multi-Lane Free Flow (MLFF) tolling system, which has already been awarded for implementation at the Choryasi Fee Plaza on NH-48 in Gujarat, and is scheduled to become operational in 2026. In parallel, NHAI has awarded 5 more barrier-free tolling’s, marking a major modernization push.

Once implemented, vehicles will be able to pass at highway speed, with toll deduction happening automatically -- with no barriers and no queues.

During construction, users to pay only 50% toll
Highway upgrades often mean inconvenience. Recognizing this, MoRTH’s updated rule ensures that when a road is being upgraded from 2 lanes with paved shoulders to 4, 6, or more lanes, users need to pay only 50% of the earlier toll until the work is completed. For instance, if the toll rate is ₹50 on a National Highway undergoing multi-lane expansion, users will pay only ₹25 during the construction period. This clearly reflects MoRTH’s commitment to improving road quality while upholding transparency and accountability, ensuring that during construction commuters are not overcharged and that travel remains fairer and easier on people’s pockets.

Beyond toll costs, MoRTH has strengthened the FASTag ecosystem itself by:

*    One Vehicle, One FASTag to prevent misuse.
*    FASTag issuance linked with VAHAN to stop vehicle class fraud.
*    Double fee for loose FASTags to ensure smoother operations.
*    Multiple grievance channels — 1033 helpline, email support, bank helplines, and RajmargYatra App.

A quiet transformation on India’s highways
These initiatives may not always make headlines, but they are felt every day, in shorter queues, predictable expenses, smoother rides, and a more seamless experience at toll booths.

The approach over the last year shows that good governance doesn’t have to choose between public convenience and economic growth. With smart policy, digital tools, and empathy for road users, it is possible to deliver both.

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