The revolution in communication and embedded systems Electronic Toll Collection, the new era of intelligent transportation systems enables the automatic collection of Toll fees from the prepaid account through RFID. Yet there is lack of security in the existing system, number plate detection and recognition can be made. In the existing system detection is made with condition random field algorithm. Recognition method is implemented by optical character recognition. A system can be designed to extract the number plate from vehicle automatically using image processing technique, match with database automatically and generate the One Time Password(OTP) and bill without any delay and identify the theft vehicles. This is done by using Image processing and motion capturing technology