The paper briefly covers the evolution of Radio Frequency IDentification (RFID) technology and elaborates the term and its importance in library management system and working. It proposes the idea of developing an RFID based system for the libraries with special reference to India. Issues related to feasibility and planning and tendering have been comprehensively covered. The deployment process and checklist for implementing the system has been discussed in detail. The paper describes the basic and optional components and procedures required for successfully implementing and working of the system. The author also discusses RFID standards and advantages and limitations of RFID use in the libraries. A comparison of Barcode vs RFID vs EM Strips vs Hybrid technology has been provided. RFID Vendors and libraries using the RFID in India have been listed. RFID scenario of Indian libraries and global RFID scenario have been explained. Besides, it outlines various issues and challenges involved in the process of implementing RFID system in libraries. The paper may help to provide an insight for libraries and librarians wishing to implement the RFID system in Indian environment.