The technological advancements has taken fast pace globally throughout the world during last 10 years. The more and more digital impact has been seen in different areas related to every field. Private as well as government sectors put large emphasis and financial budget involvements to make most of the activities digital among people. The new RFID technology developed and when implemented in the libraries, it reduces the workload of circulating books through digital process of check-in and checkout among the users. RFID reduces time required to perform the Circulation operations in the libraries as compared to manual activities. RFID tags are capable and much faster than barcodes and with the help of handheld reader; items in the stack can be read at the same time. Apart from the advantages, the technology RFID has to face many challenges for its implementation and smooth working in the digital environment. The financial budget involved in it is very high. Due to chances of tag removal and tag collision, it needs extra care to be given. RFID is an excellent advanced technology but it needs to improve security factors and standards of its products and services.