The National Payments Corporation of India (NPCI) is working on an innovative parking payment system that utilizes artificial intelligence, moving beyond the conventional FASTag RFID technology currently used for tolls and some parking facilities. Unlike the existing method, which relies on RFID tags typically placed on the windshield, this new system will employ cameras at parking locations to capture vehicle license plates. The AI will then process these images, converting them into numerical data to automatically deduct fees from the associated FASTag account.

RFID, or Radio Frequency Identification, is the technology behind FASTag, enabling toll and parking payments through radio waves that communicate with tags attached to vehicles. 

As per an NPCI official, “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,” as reported by Moneycontrol.

Currently, the proof-of-concept is in progress for both private and public parking areas throughout India, targeting all pre-registered FASTag users. The official added that NPCI plans to collaborate with various startups to enhance and develop this technology further.

At present, FASTag utilizes RFID technology for toll payments as vehicles pass through. However, this new method will implement AI-driven Automatic Number Plate Recognition (ANPR) and optical character recognition (OCR) to simplify parking transactions.

The goal of this system is to alleviate congestion, enhance payment accuracy, and combat fraud by identifying counterfeit or altered number plates.