Demonetization had been implemented two times in India i.e. in 1946, 1978, and 2016. Demonetization’s Success depends on its implementation in a good manner. For effective implementation of demonetization in India banks plays a strategic and vital role. Because bank is backbone of financial system in India.  During the year 2016 in Indian Banks faced various problem right from physical cash shortage at the limitless and many more problem of less withdrawal limits, inadequate withdrawal etc, this resulted in heavy crowd in banks and ATMs leading to affront of common people. Transactions on E-Banking system i.e. NEFT, RTGS are started by many people. On the other hand, Digital India scheme is also promoted for online banking transactions by Government of India. In this study we look for the long term impact of demonetization on E-Banking system. Banks are foundation of any economy for make a channel for the money to the smooth functioning of unlike sectors and the key contributors to the growth of overall economy of any country. Efforts are made in this study to point out the role of E-Banking before and after the demonetization. The paper also makes an attempt to assess the importance, enlargement and implication of E-Banking after demonetization.

KEYWORDS:  UPI (Unified Payments Interface) NEFT, RTGS, Demonetization.