An exponential increase in number of vehicles necessitates the use of automated systems to maintain vehicle information. The information is highly required for both management of traffic as well as reduction of crime. Number plate recognition is an effective way for automatic vehicle identification. Some of the existing algorithms based on the principle of learning takes a lot of time and expertise before delivering satisfactory results but even then lacks in accuracy. In the proposed algorithm an efficient method for recognition for Indian vehicle number plates has been devised. The algorithm aims at addressing the problems of scaling and recognition of position of characters with a good accuracy rate of 98.07%.