Knowing that NRB allows RFID prepaid toll cards is only half the picture; the more useful question for anyone actually planning a drive is where the tag works and which bank will issue it. Nepal's toll system is expanding from a single tunnel to a defined network of 23 designated road sections, and not every bank or every route is at the same stage of rollout. This guide lays out exactly which highways carry a toll obligation, which of them are RFID-ready today, and which banks are authorized to issue the tags.
Quick Answer
The Government of Nepal has designated 23 road sections for toll collection, expanded from 15 pre-pandemic routes by adding eight new sections, including four stretches of the Mahendra Highway in the west, parts of the Araniko and Prithvi highways, the Kathmandu-Tarai/Madhesh Expressway, and the Nagdhunga Tunnel. NRB has authorized roughly 20 Class 'A' commercial banks nationwide to issue RFID prepaid toll cards, but as of this writing the live RFID rollout is concentrated at the Nagdhunga Tunnel, where a smaller group of partner banks issues the N-Tag. Most of the other 22 designated roads still collect tolls through cash or standard booth payment until RFID readers are installed there.
The 23 Designated Toll Roads
Nepal collected tolls on 15 roads before the COVID-19 pandemic paused the practice. Road Board Nepal has since resumed collection and expanded the list to 23 sections after the Road Toll Collection Procedure, 2025 was approved by the cabinet.
| Road / Section | Highway | Status |
|---|---|---|
| Butwal-Lamahi | Mahendra Highway (west) | Cash toll, RFID pending |
| Lamahi-Kohalpur | Mahendra Highway (west) | Cash toll, RFID pending |
| Kohalpur-Attariya | Mahendra Highway (west) | Cash toll, RFID pending |
| Attariya-Gaddachauki | Mahendra Highway (west) | Cash toll, RFID pending |
| Dhulikhel-Tatopani | Araniko Highway | Cash toll, RFID pending |
| Muglin-Pokhara | Prithvi Highway | Cash toll, RFID pending |
| Kathmandu-Tarai/Madhesh Expressway | Fast Track | Not yet operational |
| Nagdhunga-Naubise Tunnel | Tribhuvan Highway corridor | RFID live (N-Tag) |
| 15 pre-pandemic toll sections | Various national highways | Cash toll, RFID pending |
Status reflects reporting available at time of writing. Road Board Nepal expands RFID coverage incrementally, so a road listed as cash-only today may gain RFID readers later; confirm the current setup for your specific route before travel.
Where RFID Actually Works Today
Of the 23 designated roads, the Nagdhunga Tunnel is the clear front-runner for electronic toll collection. It became Nepal's first fully built-out RFID deployment, with UHF RFID readers installed at both ends of the tunnel and an N-Tag sticker system that deducts tolls automatically. The remaining 21 operational sections, plus the not-yet-open Kathmandu-Tarai/Madhesh Expressway, are expected to move toward similar electronic systems over time, but NRB's directive only sets the legal permission for banks to issue RFID tags; the physical rollout of readers and gates at each toll point is a separate, ongoing infrastructure process led by Road Board Nepal and its technology partners.
Which Banks Are Involved
NRB's amendment to the Unified Directive on Payment Systems opened RFID toll card issuance to Class 'A' commercial banks broadly, covering roughly 20 operational banks in Nepal. In practice, participation has rolled out in stages rather than all banks launching simultaneously.
| Coverage Group | Banks / Scope | Role |
|---|---|---|
| Eligible to issue (nationwide) | All NRB-licensed Class 'A' commercial banks (~20) | Legally authorized under the 2026 directive amendment |
| Nagdhunga N-Tag partners | Global IME Bank, Nabil Bank, Kumari Bank, Nepal Investment Mega Bank, plus a fifth bank reported as either Sanima Bank or Machhapuchhre Bank | Actively issuing N-Tag RFID stickers for the tunnel |
| In discussion for tunnel integration | 13 Class 'A' commercial banks | Reported by Road Board as in talks to integrate, with more expected to join |
| Broader ETC system integration | 9 Class 'A' banks, plus Fonepay as payment system operator, and wallets such as eSewa and Khalti | Financial integration layer described for the wider electronic toll collection rollout |
Kumari Bank was reported to have prepared roughly 10,000 N-Tag cards ahead of the tunnel's opening, giving a sense of how the early rollout was weighted toward a handful of banks rather than spread evenly. As Road Board Nepal's discussions with the other Class 'A' banks progress, expect the list of banks actively issuing tags to grow beyond the initial launch group.
Frequently Asked Questions
How many toll roads does Nepal currently have?
Can I use an RFID toll tag on any of the 23 designated roads?
Which banks currently issue the N-Tag for Nagdhunga Tunnel?
Are all commercial banks in Nepal allowed to issue RFID toll cards?
What happens on toll roads that do not have RFID readers yet?
The Bottom Line
Nepal's toll network is bigger than the RFID conversation alone suggests. Twenty-three roads now carry a toll obligation, but only the Nagdhunga Tunnel has a fully working RFID tag system in place, issued by a small group of partner banks out of the roughly 20 that are legally eligible. If you drive the Nagdhunga corridor regularly, getting an N-Tag from one of the confirmed partner banks makes sense now. If your regular routes are elsewhere on the 23-road list, keep paying cash for the time being and watch for announcements as more banks and more highways come online.
Related Reading
For a full walkthrough of how the RFID prepaid toll card actually works, including the Nagdhunga Tunnel's toll rates and application steps, see the companion guide on bandhufintech.com.
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