In their quest to implement a low cost solution to build an electronic base toll plaza, the Indian authorities turned to RFID technology to help them solve the problem. Seen in Invest India, Union Minister for Road Transport will opening India's first electronic toll collection plaza which uses RFID technology. The toll plaza which is located in Chandimandir, Punchkula in north India will be reducing traffic congestion in the area. Motorists going through the toll do not have to slow down to make payment and since the system is fully automatic, all they have to do is to stick the reader on the windscreen and the system will do the rest.
During the installation of the RFID system to the car, the details of the vehicle and its classification will be recorded. This is to avoid any abuse of the RFID tags. Should there be any attempt of fraudulent behavior, the system will capture an image of vehicle in question and the picture be sent to the relevant authorities. The system will be controlled by a centralized system called the Central Toll Clearing House where the revenue collection will be centralized.