HomeArtificial IntelligenceNPCI eyes AI-driven parking payments, moving beyond traditional RFID FASTag

NPCI eyes AI-driven parking payments, moving beyond traditional RFID FASTag

NPCI is testing a system where cameras and AI read vehicle number plates to automatically debit FASTag accounts, with a proof of concept underway, NPCI chief Dilip Asbe told Moneycontrol.

February 28, 2025 / 17:09 IST
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While FASTag currently uses RFID to make toll payments as vehicles move, this new approach will use AI-powered Automatic Number Plate Recognition (ANPR) and optical character recognition (OCR) to streamline parking transactions.
While FASTag currently uses RFID to make toll payments as vehicles move, this new approach will use AI-powered Automatic Number Plate Recognition (ANPR) and optical character recognition (OCR) to streamline parking transactions.

NPCI is developing an AI-powered parking payment system that goes beyond traditional FASTag RFID technology that is currently used for tolls and selected parking lots. Instead of RFID tags (barcode on FASTag sticker usually on the windshield), the cameras at parking lots will capture vehicle number plates, and AI will convert these images into numbers to automatically debit the linked FASTag account.

RFID stands for Radio Frequency Identification, and it's the technology used in FASTag to make toll or parking payments. The system uses radio waves to identify and communicate with tags attached to objects.

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“Instead of using the RFID system, we are looking at having the camera read the number plate and debit the FASTag. AI will be used to convert that image into a number. Proof of concept is being worked out,” Dilip Asbe, NPCI chief told Moneycontrol.

The proof-of-concept is underway for both private and public parking lots across India and is designed for all pre-registered FASTag users.“NPCI will be partnering with several startups to refine and build the technology,” Asbe said.