Demonetization Fallout — Future Cars Will Be Fitted With Digital Identity Tags

To help the country in its bid to become a cashless economy, the government has asked automakers to fit new vehicles with RFID tags.

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The Government has asked automakers selling their vehicles in the country to provide new vehicles with a digital identity tag in all new vehicles to make cashless payments at toll plazas easy in the future.

The government had banned Rs. 500 and Rs. 1,000 notes on November 8, 2016 which had lead to big jams at toll plazas across the country.

To avoid similar situations in the future, the government has asked automakers to provide all new vehicles with Electronics Product Code Global Incorporated (EPCG)-compliant Radio-Frequency Identification (RFID) tags.

Economic Affairs Secretary Shaktikanta Das told reporters, "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."

Fitting vehicles with RFID tags will allow readers fitted in the toll booths to deduct the toll charge automatically every time the vehicle passes a toll booth which in turn will cut jams at toll booths.

The RFID tags can be topped up by car owners whenever need for further use at a later date.

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