Demonetisation: New vehicles to have digital tag for paying toll

New Delhi: In the wake of its decision to demonetise high-value currency notes, the government has asked automobile manufacturers to provide a digital identity tag in all new vehicles to enable electronic payment at all highway toll plazas.

"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 here on Wednesday.

The RFID tag ensures that vehicles can pass the electronic toll collection booth without stopping as the toll amount is deducted from the RFID card.

Das said the RFID facility in all new vehicles will ensure payment of toll digitally and also avoid the waiting time at check posts.

"Digital payments will improve the functioning of toll plazas," he said.

The secretary also said that all government offices have been asked to make payments to stakeholders, contractors and employees only via the digital mode. 

"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," he said.

"In other words, the option of digital payments to private parties will be mandatorily provided. All these measures are meant to promote digital penetration. It will help farmers in current Rabi season to ensure normal Rabi crops on the back of a good monsoon," he added.

In view of the cash crunch following demonetisation, the government has exempted all national highways from toll payment till November 24.