New vehicles in India to have digital tag for toll payments

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Government has asked automobile manufacturers to provide a digital identity tag in all new vehicles, including cars, to enable electronic payment at all toll plazas and ensure seamless movement at check posts.

Moving towards a cashless digital economy was one of the objectives behind Prime Minister Narendra Modi’ surprise announcement earlier this month to ban old 500 and 1000 rupee notes, sweeping away 86 per cent of total currency in circulation.

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According to PTI, Shaktikanta Das, Economic Affairs Secretary said that 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.

He said 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 move will improve the functioning of toll plaza, digital payments, he added.

RFID tag will ensure that the electronic toll collection system will ensure that when vehicle pass the toll tax booths, they can pass without stopping at the toll booths. The toll amount is deducted from the RFID card.

Those tags could be recharged for future use.

Das further said all government offices have been asked to use only digital payment methods for making payments to stakeholders, contractors and employees.

As per Das government organisations, PSUs and other government authorities have been advised to use only digital payment methods such as internet banking, unified payment interface, cards, Aadhar-enabled payment systems to make payments to all stakeholders and their employees.

Also, an option for payment through cards, digital banking, unified payment interface (UPI) and Aadhar-enabled payments will be provided at the point of disbursing of payment to various private agencies, contractors and private parties.

By Shruti

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