The scheme, which is based on the National Informatics Centre-developed software Saarthi, was initially launched at transport offices in Lucknow, Agra, Allahabad, Ghaziabad, Kanpur, Varanasi, Meerut, Jhansi, Aligarh and Barabanki districts.
However, transport officials told IANS that the scheme would be extended to all the transport offices in the state by April 2013.
The first smart card driving licence was issued to the chief minister.
Under the new scheme, driving licence applicants will have to be present in person before the authorities to submit their thumb impression, photo and signature.
Officials said duplication of such licences would not be possible as for each smart card two secret keys would be generated and made available to two transport officials who would be encrypting it to check any duplication.
The data collected at all transport offices would form a state-level data base and eventually be included in a national-level register.
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A micro-chip on the driving licence will hold all personal details of the holder and officials will be able to access the required information through a smart card reader.
Applicants will have to pay Rs.200 for each smart card driving licence and additional Rs.50 per vehicle.