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We propose an optical technique for measuring refractive index of clear and transparent liquids. This technique senses change in refractive index of liquid by virtue of lateral displacement of a light beam that occurs due to refraction of the light beam after passing through the liquid medium. The transmitted light beam gradually looses its alignment with a photodetector as refractive index of the liquid changes. Experimental results have indicated that the proposed technique has the potential to measure refractive indexes with an accuracy of 10-4, and it has novelty of being a simple and non-intrusive one.