There may be a major change in the toll payment system in the country from April 1, 2026, where in the future, tolls will be automatically deducted according to GPS-based distance, and questions are also being raised regarding privacy.
The country’s toll collection system is once again undergoing a major change. First, there was cash payment, then FASTag was implemented, and now the government is preparing to integrate toll collection with GPS technology. Reports claim this new system will save both time and money, and the government may also see an increase in revenue. But amid these benefits, two important questions are arising in the minds of ordinary people. First, will this impose an additional burden on their pockets? And second, will it compromise the security of personal information?
The mode of payment will change from April 1, 2026
The National Highways Authority of India (NHAI) has clarified that a major change will be made to the toll payment system starting April 1, 2026. After this date, cash payments at toll plazas will be discontinued, and tolls will be collected only through FASTag or UPI. However, currently, approximately 98 percent of toll transactions are conducted using FASTag.
Union Road Transport and Highways Minister Nitin Gadkari recently indicated that toll collection will be fully integrated with GPS technology by the end of 2026. This means that in the future, there will be no need to stop at toll plazas, and the toll will be automatically deducted based on distance through a satellite-based system.
How will the GPS system work?
A GPS-based toll system will use in-vehicle devices or tracking technology to determine the distance traveled on a national highway. The corresponding toll fee will be deducted directly from a bank account or linked wallet. This is expected to reduce long queues and traffic jams.
The government believes this system will also curb toll evasion and revenue leakage. It is estimated that additional savings of approximately ₹1,500 crore per year will be possible after the new system is implemented. Currently, this technology is being tested as a pilot project on select routes. If results are satisfactory, it could be implemented nationwide by the end of 2026.
Will it affect your pocket?
A distance-based toll system means that the distance traveled corresponds to the amount of money you pay. This could benefit those who travel short distances, while those traveling longer distances could see their total costs remain the same or even slightly higher than the current system. The final impact will depend on how the government sets the rates.
What are the questions regarding privacy?
The biggest concern is data security. GPS-based systems will record vehicle location and movement information. Therefore, it’s crucial to limit the use of this data to toll collection and prevent misuse. Experts say strong data protection laws and transparent monitoring systems will play a key role in this regard.
