Toll Collection Update: Banks to Begin Collecting Toll on National Highways, Starting with Dwarka Expressway

In a move aimed at enhancing transparency and revenue management, banks will soon begin collecting toll taxes on national highways. The National Highway Authority of India (NHAI) has invited banks to bid for toll collection rights, with the Dwarka Expressway as the first highway to launch this initiative.

The NHAI will grant tolling rights to banks that offer the highest revenue share, with contracts lasting for three years. Banks awarded the tolling rights will need to implement the system within three months. Experts believe that involving banks in toll collection will increase accountability and reduce revenue leakage.

How the Toll System Will Operate

The new Multi-Lane Free Flow (MLFF) tolling system on the Dwarka Expressway will eliminate traditional toll plazas. Instead, equipment and sensors will be installed on gantries along the highway, which will detect vehicles and automatically deduct toll fees via the Fastag system linked to the vehicle’s wallet.

This toll system will have a single tolling point on the 28-km expressway, located about 9 km from Delhi on the Delhi-Gurgaon border. Only vehicles passing this point will incur toll charges, although the government has not yet specified the exact toll amounts.

Role of Sub-Contractors

Since banks typically lack toll collection experience, they will be permitted to appoint experienced sub-contractors through NHAI’s subsidiary, IHMCL. Sub-contractors must have at least 10 years of experience in MLFF-based tolling and have managed similar systems on at least 200 km of highway.

Why Banks Are Involved

By engaging banks—institutions regulated by the Reserve Bank of India—NHAI aims to ensure a higher level of transparency and secure revenue for these national infrastructure projects. NHAI plans to expand this model to other new expressways, aiming to reduce traffic congestion and promote smoother travel experiences.