Double Pay Rule For Invalid FASTag/No Balance Will Be Scrapped Soon: Details

Written By: Vikas Kaul
Published: October 5, 2025 at 02:17 AMUpdated: Updated: October 5, 2025 at 02:17 AM
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Penalty reduced for Invalid FASTag users

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From 15th November 2025, motorists without valid FASTags will no longer be charged double tolls. Instead, if they choose to pay using UPI, they will be charged 1.25 times the regular toll.

Cash payments without a FASTag will still attract the double penalty, but this new rule significantly reduces the burden for those who face technical issues or balance problems with FASTag. The Ministry of Road Transport and Highways confirmed the change through an official notification.

What the rules look like now

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At present, vehicles without valid FASTags or with tags that do not work are charged twice the normal toll if they pay in cash. For example, a Rs 100 toll becomes Rs 200.

This applies even if the problem is due to malfunctioning tags or insufficient balance. The penalty has caused problems for interstate travellers, tourist vehicles, and even emergency service providers, all of whom have faced inflated charges regardless of the situation.

It's common for Fastag balance to get exhausted during a drive, and inability/forgetting to recharge results in double toll, which can be quite steep and excessive.

The new three-tier structure

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The revised rules create a clear system. FASTag users continue to pay the base toll. Non-FASTag users who pay in cash will still be charged double, but those using UPI will now pay just 1.25 times the regular toll.

The aim is to reduce cash transactions while giving drivers a fairer option if their tag fails or their balance runs out. This approach also keeps pressure on drivers to adopt digital methods without penalising them excessively.

Accountability for toll operators

The new rules also hold toll collection agencies responsible for system failures. If a valid FASTag does not work due to a malfunction at the toll plaza, the vehicle must be allowed through without paying.

In such cases, operators must issue a zero-value receipt to confirm the failure. All receipts, whether for FASTag, UPI, or cash payments, must include details such as date, time, vehicle category, and payment method. These requirements are designed to improve transparency and prevent disputes.

Technology and QR code rollout

The National Highways Authority of India (NHAI) has also announced that information boards with QR codes will be placed along highways. Scanning these codes will give travellers project-specific details and emergency helpline numbers.

They will be installed at toll plazas, rest areas, truck lay-byes, and highway entry and exit points. This is part of a broader effort to digitise highway information and improve safety.

Timeline and industry response

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The new penalty system will come into effect from 15th November 2025. This three-month window allows toll operators to update systems and train staff.

The change has been welcomed by transporters and logistics companies, who say drivers often face double penalties when FASTags do not work properly across states. However, some operators argue that continuing to impose double penalties for cash payments could still cause friction.

Impact on toll collections

The government expects little impact on revenue, since 98 percent of toll payments are already made through FASTag. The shift mainly affects the small proportion of vehicles that run into problems.

Officials say the real goal is not penalty income but eliminating cash transactions, which currently cause leakages estimated at around Rs 10,000 crore annually.

Towards a cashless highway system

The new FASTag rules are being seen as a step towards completely cashless tolling. While technologies like satellite-based tolling and number plate recognition are still being tested, the immediate focus is on making digital payments easier for motorists. By offering UPI as a middle ground, the government reduces disputes at plazas while keeping FASTag as the most attractive option.