#Demonetisation: Introduction of RFID tag in all new vehicles to collect toll charges

Government has further extended the toll charges exemption till December 01st, 2016 midnight in an announcement made on Thursday.


Introduction of RFID tag in all new vehicles to collect toll charges

In view of the post-demonetisation of higher denomination currency values, the government has asked the auto manufacturers for provision of digital ID device in all new vehicles to facilitate toll payments digitally and also pave the way towards cashless toll collection eliminating delay in the highway toll plazas, fulfilling the objectives behind PM Narendra Modi’s aspiring digital penetration.

Economic affairs secretary Shaktikanta Das told reporters on Wednesday that, “the Ministry of Road, Transport and Highways is advising automobile manufacturers for the provision of Radio-Frequency enabled Identification (RFID) in all new vehicles to facilitate electronic transfer of payments at toll plazas for collection of toll smoothly.”

The RFID facility in all new vehicles would ensure toll collection during the passage of vehicles through highway toll plazas, without stopping there, eliminating delay at the check-posts.

“Digital payments will improve the transparency in the functioning of the toll plazas,” he added.
The secretary also said that all government offices has been instructed to make payments to all stakeholders, contractors, and employees through the digital mode only.

Das also said that “Government organizations, PSUs and other government authorities have also been advised to use only the electronic methods such as internet banking, unified payment interface (UPI), plastic cards, Aadhar enabled payment system to disburse payments to stakeholders & employees.”

Secretary also emphasized the mandatory provision of digital payments mode to private parties. Other than issuing a cheque or bank draft to private parties, one can make online payments thus promoting digital penetration. This will also help farmers to raise normal Rabi crops in the ongoing Rabi season on the back of good monsoon so as to ensure unhindered farming operations.

It may be noted that following demonetisation, government suspended toll collection on national highways till November 24th and further extended the exemption till December 01st, 2016 midnight in an announcement made on Thursday.

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