New FASTag Rule 2025: UPI Payments to Cost 25% More, Cash Double at Toll Plazas
Starting November 15, 2025, a big change is coming for all highway users in India. The government has announced a New FASTag Rule that changes how toll payments will be charged if you don’t use a valid FASTag.
Under this new rule:
- If you pay your toll using UPI, you will be charged 1.25 times the normal FASTag rate.
- If you pay by cash, you will be charged twice the regular toll amount.
That means if your normal toll is ₹100, you will now pay ₹125 through UPI and ₹200 in cash if you don’t have a working FASTag.
Why the New FASTag Rule?
The government’s goal behind the New FASTag Rule is to encourage digital and contactless payments at toll plazas and to reduce congestion caused by cash transactions. FASTag has already helped make toll collection faster and more transparent, but there are still many users who either don’t have FASTags or have inactive ones.
Here are the main reasons for introducing this rule:
1. Promote digital payments
Handling cash at toll plazas slows down the process and leads to longer queues. The new rule encourages people to switch to FASTag or digital modes like UPI for smoother transactions.
2. Reduce traffic congestion
Cash transactions take more time at toll booths. By penalizing cash payments, the government hopes to speed up traffic flow and reduce waiting time at toll plazas.
3. Improve transparency
Digital payments through FASTag or UPI leave a clear digital trail. This helps authorities track toll collection more effectively and reduces chances of errors or misuse.
4. Move towards a fully digital toll system
India aims to make toll collection 100% electronic in the coming years. The New FASTag Rule is an important step toward that goal.
How the New FASTag Rule Works
Let’s understand how this rule will affect different payment modes with a simple example:
| Payment Mode | You Pay (if regular toll is ₹100) |
| FASTag (valid) | ₹100 |
| UPI (no FASTag) | ₹125 |
| Cash (no FASTag) | ₹200 |
So, even if your FASTag is not working, paying digitally through UPI will be cheaper than paying cash — but still costlier than using FASTag.
This system rewards people who use digital methods while discouraging those who rely on cash.
Who Will Be Affected
The New FASTag Rule affects all vehicles using India’s national highways that have toll plazas. You’ll be impacted if:
- You don’t have a FASTag installed.
- Your FASTag is inactive, damaged, or not linked properly.
- You prefer paying tolls in cash.
For regular FASTag users, there’s nothing to worry about — your toll rate remains the same. But if your tag is not working or has low balance, you might end up paying more.
Benefits of the New FASTag Rule
1. Faster traffic movement
With fewer people paying in cash, the toll collection process will be quicker. This means shorter queues and less time wasted at toll booths.
2. Less cash handling
Reducing cash use also reduces errors, leakage, and the risk of corruption. It also means less burden on toll operators to manage and count physical money.
3. Boost to digital India
The rule aligns with India’s Digital India mission by promoting online and contactless payments. It pushes more citizens to adopt digital tools like UPI and FASTag.
4. Fairer system
Earlier, people without FASTag were charged double the toll regardless of payment mode. Now, those who at least use digital payment get a smaller penalty of just 25% extra.
Challenges and Concerns
While the New FASTag Rule has many advantages, there are also some concerns:
- System errors: Sometimes FASTag scanners or toll systems fail to detect tags correctly, which may cause confusion or overcharging.
- Connectivity issues: UPI payments depend on mobile networks and internet access. In remote areas, this could be a problem.
- Public awareness: Many drivers may not know about the new rule right away, which could lead to disputes at toll plazas.
- Extra cost for forgetfulness: Even genuine users who forget to recharge their FASTag may end up paying 25% more via UPI or double in cash.
The government is expected to run awareness campaigns before November 15 so that highway users understand these changes well.
How to Avoid Paying Extra
If you drive regularly on highways, here’s how you can stay ready for the New FASTag Rule:
- Check your FASTag status
Ensure your FASTag is valid, properly linked, and active. - Maintain sufficient balance
Keep enough balance in your FASTag wallet to avoid automatic deactivation. - Use UPI if FASTag fails
If your FASTag doesn’t work, pay via UPI instead of cash. You’ll still save compared to the double cash toll. - Recharge in advance
Don’t wait until you reach the toll gate. Set auto-recharge or reminders for your FASTag account. - Stay informed
Keep an eye on updates from the National Highways Authority of India (NHAI) and government announcements.
Conclusion
The New FASTag Rule is another big step toward a faster, cleaner, and more digital highway experience in India. From November 15, 2025, if you don’t use a FASTag, you’ll need to pay extra — 1.25x for UPI and 2x for cash.
It’s clear that the government wants everyone to move to digital toll payments for smoother travel and better transparency.
So, before your next trip, check your FASTag, recharge it, and be ready. With the new system in place, using FASTag isn’t just convenient — it’s also the most cost-effective option.
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