India has been witnessing financial transactions through digital mode since the availability of internet facility in urban cities. One could observe gradual increase in the same ever since smart phones reached in the hands of general public because of its cost and need. But, the major thrust towards digitization has been witness subsequent to demonetization of Rs 500 and Rs 1000 currency notes in India. It was all due to technology and digital mode of transferring money which did not allowed the entire business system coming to halt. The present study focuses on the impact of demonetization in enhancing the digital mode of transactions and shift of our society towards cashless regime. The findings of the study have been supported by various statistical test such as Kolmogorov Smirnov test , Levenes test, ttest, etc.   
 
KEYWORDS: Demonetization, NEFT, Mobile transactions, Kolmogorov Smirnov test, Levenes test. 

Introduction  Among the various steps taken by the present Government for bringing reform in economy, one of the main step has been demonetizations of Rs 500 and Rs 1000 currency notes from the midnight of November 8,2016. As most of the businesses, particularly the organized ones, were already making use of digital or online system of payment, the move did left any choice for the business in unorganized sectors and being conducted on smaller scale except to adopt online or digital mode of financial transactions.

Objective and Hypothesis of the Study  The present study aims to examine the impact of demonetization in bringing significant change in the number of digital mode of transactions. Transactions through various kind of digital mode of settling transactions such as National Electronic Funds Transfer (NEFT) and Mobile transactions released by Reserve bank of India have been used to examine the same. These mode of transactions have been focused as they are generally used by individuals in paying off their routine bills and settling their dues. Accordingly, the following null hypotheses have been tested using t-test :

Null Hypothesis (Ho)  There is no significant difference between volume of transactions through mobile transactions during pre and post demonetization period. 

Null Hypothesis (Ho)  There is no significant difference between volume of transactions through NEFT during pre and post demonetization period.

Research Methodology  In order to test the above hypotheses, the data in respect of Mobile transactions and NEFT for the period January, 2016 to October, 2017 has been taken from RBI reports. The entire period of 22