India's economy has always been centeredon cash based. The government's move to seize all black money and undeclared assets, as well as the recent Covid epidemic, has mandated contactless payments and increased cashless transactions. The adoption of demonetization in 2016 paved the way for a cashless economy. The word "cashless" has recently piqued the imagination of bureaucrats, academics, and researchers all around the world. A cashless economy is one in which the majority of transactions are completed without the need for physical cash or hard currency. Almost most of the countries have used cashless transactions. The Indian government has also begun a cashless transaction, similar to the digital Indian economy, by reducing the use of physical cash. This paper examines the obstacles and opportunities that India faces as it moves toward a cashless society and also discusses the concept of a cashless system, as well as the issues that come with it. This report also makes some recommendations for smooth cashless system implementation and how this transition will benefit India in the future.

KEYWORDS: Cashless Economy, e- Payment System, Challenges and Opportunities of the Society.