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Implementation of Radio Frequency Identification (RFID) in libraries has carried exceptional improvement like automated issue return, security of library materials, inventory control etc. RFID is the latest technology used in libraries for managing the automated library and also for theft detection. The paper highlights that the importance of Implementing RFID system in UPES library and emphasizing its advantages, disadvantages, different component of the system and their standards. The relevant cost of the different component and approximate total cost of implementing an RFID system for a library is given.