Govt asks auto-manufacturers to provide RFID tag for digital toll payments

Making all the right moves towards making India a truly digital platform, the Indian government has now asked vehicle manufacturers to provide digital identity tag in all new vehicles.

The government hopes to deploy this digital identity tag (RFID) to enable electronic payment at all toll plazas, thus ensuring a continuous flow of traffic and an effortless toll payment experience for the travellers.

Economic affairs secretary Shaktikanta Das said, "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."

Once the scheme is fully implemented, the toll amount will be deducted from their rechargeable RFID tag once you pass the booth. No more waiting at toll plazas!!

Definitely, it's a step forward towards digitizing the country, however, the scheme was proposed only after facing the after-effects of demonetization. Although toll taxes were put on hold until 24th of November, realizing the problems that people would have had to face (if the toll taxes were not on hold), the government is offering this scheme.

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

FASTag, a rechargeable tag by ICICI Bank is already provided at 180 toll plazas across national and state highways. The tag that employs Electronics Product Code Global Incorporated (EPCG)-compliant RFID technology, is fastened on the windscreen of vehicles that enables automatic deduction of toll charges.