Car makers asked to fit RFID tags in all new vehicles to allow digital toll payments

Car makers asked to fit RFID tags in all new vehicles to allow digital toll payments
Representational Image. Courtesy: Engadget

In yet another step towards becoming a digitized economy, the government has asked automobile manufacturers to provide a digital ‘identity tag’ in all new vehicles to allow for electronic payments at all toll booths.

Since coming into power in 2014, the Narendra Modi-led government has been trying increase the adoption of digital payment options in a bid to curb the circulation of black money in the country.

The recent demonetization of high value currency was also intended to weed out black money and improve overall transparency.

“So, as far as toll plazas are concerned, the Ministry of Road, Transport and Highways is advising vehicle manufacturers that in all new vehicles, the manufacturers must provide Radio-Frequency Identification (RFID) facility,” Economic Affairs Secretary Shaktikanta Das told reporters in Mumbai today.

Das further stated that the provision of Electronics Product Code Global Incorporated (EPCG)-compliant RFID facility in all new vehicles will ensure payment of toll digitally and also avoid the waiting time, and the vehicles will move seamlessly without having to wait at check posts.

“This will improve the functioning of toll plaza, digital payments,” Das added.

The presence of RFID tags will ensure that vehicles are able to pass from toll booths without stopping. The collection systems will be equipped to deduct the necessary amount from the rechargeable card.

In the wake of the recent cash crunch and lack of a digital payment alternative, the government was also forced to suspend toll collection at national highways across the country till November 28.

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