Abstract: The embodiments herein disclose a virtual traffic monitoring system and method for avoiding traffic rule violation. The system comprises several slave microcontrollers interfaced with one active device and a sensor. The active device and the sensor in conjunction with several components detect a traffic rule violation. The components include a GPS, a LCD, a Digital Imaging Device, an ADC, a GSM and an ECU. A buzzer is provided in the vehicle for providing an audio alert to the driver of the vehicle. The traffic violation information is sent to the traffic controlling authorities in the form of a text message via an RF transceiver. A power source is provided for supplying an electrical power to the traffic monitoring system components and the sensors.