The Registering and Licensing Authority (RLA) will also accept demand drafts as payment for road tax, instead of the only cash policy in place now.
The move, to be introduced within a week, will help in smoother operations and ensure safety, especially for buyers of high-end cars, where the amount runs into lakhs of rupees and has to be carried in cash.
Nearly 160 cars are registered at the RLAs a day. Of these around 20% cost above Rs 20 lakh and have to pay to 8% as road tax.
"Recently, a Bentley car owner submitted Rs 32 lakh as the road tax. With drafts being accepted, people can be saved the hassle of carrying so much cash. There is a charge for getting drafts made, but the system will also check increasing incidents of cash snatchings," said a RLA official.
RLA incharge Kashish Mittal said: "We are waiting for approval from the deputy commissioner office. This is expected in two-three days."
This move, officials added, will also help RLA address the issue of counterfeit currency notes landing up at the office.
Vehicles that cost up to Rs 20 lakh are taxed at 6%, while for those priced above Rs 20 lakh, the levy is 8%.
Two wheelers costing up to Rs 1 lakh pay 3% tax; 4% tax is levied on vehicles costing between Rs 1 lakh and Rs 4 lakh. Two-wheelers that cost above Rs 4 lakh pay 5% tax.