NPCI shifts to AI for parking payments, moving past RFID FASTag

The AI-powered payment system offers several benefits, including reducing congestion in parking lots, improving the accuracy of payment processing, and reducing instances of fraud

The National Payments Corporation of India (NPCI) is developing a cutting-edge AI-powered parking payment system that aims to revolutionize the current process by eliminating the need for traditional RFID technology, used in FASTag toll payments. Instead, the system will leverage Automatic Number Plate Recognition (ANPR) and Optical Character Recognition (OCR) technology to streamline parking transactions.

FASTag, which uses Radio Frequency Identification (RFID) technology, has become an essential part of India's toll payment infrastructure, enabling vehicles to make seamless toll payments through tags placed on their windshields. However, NPCI's new system will go a step further by replacing RFID with AI-powered cameras placed at parking lots. These cameras will scan the vehicle’s number plate, and AI algorithms will convert the captured image into a number, automatically linking it to the driver’s FASTag account for payment processing.

Dilip Asbe, the CEO of NPCI, reportedly said, "Instead of using RFID, we plan to have cameras read the number plates and debit the linked FASTag account. AI will interpret the image and translate it into a number, and we are currently working on the proof of concept."

AI-powered payment system under testing

The initiative is already in the testing phase, with proof-of-concept trials underway at both private and public parking lots across the country. The new system will be available to all registered FASTag users, making parking payments faster and more efficient. NPCI is also collaborating with various startups to refine and enhance the technology.

The AI-powered payment system offers several benefits, including reducing congestion in parking lots, improving the accuracy of payment processing, and reducing instances of fraud. By detecting fake or tampered number plates, the system will enhance security and help prevent fraud.

This ambitious move by NPCI is expected to modernize India’s parking payment system, creating a more convenient, efficient, and secure experience for drivers across the country while driving the adoption of cashless transactions.