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Centre pushes for digital identity tags in vehicles (Relevant for GS Prelims and Mains Paper II)

Govt. reiterated the use of digital identity tags in vehicles:
The government repeatedly emphasized on the need for use of digital identity tags in all vehicles, including cars, to enable electronic payment at such places.
It added that the Ministry of Road Transport and Highways is therefore advising the automobile manufacturers to provide ETC- compliant RFID in all new vehicles.

Benefits of digital identity tags:
Vehicle Tracking
•    Reduce labor cost for vehicle processing.
•    Decrease on-site dwell time, enabling better yard throughput and increased responsiveness to dealer and customer demands
•    Enhance quality by ensuring that no process steps are missed and that every vehicle departs in accordance with dealer/customer specifications

Background:
The government had through a notification in 2013 mandated that all passenger and commercial vehicles be fitted with Radio Frequency Identification Tag (RFID). 
According to industry estimates, more than six million RFID tags were fitted on vehicles by auto makers in last three years.

What is RFID? 
Radio-frequency identification (RFID) is the wireless use of electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects. The tags contain electronically stored information.

RFID is one method for Automatic Identification and Data Capture (AIDC). RFID tags are used in many industries, for example, an RFID tag attached to an automobile during production can be used to track its progress through the assembly line; RFID-tagged pharmaceuticals can be tracked through warehouses etc.

An RFID tagging system includes the tag itself, a read/write device, and a host system application for data collection, processing, and transmission.



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