The paper is an attempt to analyze the views of the people on introduction of cashless economy in Nagaland, a state in Northeast India and identify the benefits and challenges. The revolution of smart phone has led to the emergence and popularization of cashless economy such as, e-commerce, m-commerce and other services, including app-based cab aggregators, which encourage digital payments for use of various payment services. The value added services such as cash back, bill payment facilities, loyalty points, rewards and ease of use have resulted in staggering surge of such digital platforms. These developments have given rise to a modern payment model. The study was carried out in Dimapur district, which is the commercial hub of the state of Nagaland, using a structured questionnaire and analyzed using simple percentage method. Results indicates that, problems like counterfeit currency, black money, fighting against funding for terrorism and other cash related activities can be conspicuously reduced through cashless economy, which can boost economic growth of the country. However, attitude of the people, ignorance and illiteracy, cyber fraud and lack of transparency and efficiency of digital mode of payment were some of the challenges identified as hindrance in implementing various cashless policies. Nevertheless, the introduction of cashless economy can be a breakthrough towards advancement and expansion of a country’s economy. To become a fully cashless economy for Nagaland and India as a whole is still a long way and for this the government needs to develop a smooth and secure infrastructure.

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Keywords: Cashless, Economy, E-commerce, Digital, Nagaland.