India was known to be heavily cash based economy where people preferred doing transactions in cash mode than any other mode. However, after demonetization many consumers as well as businesses in India have shifted to cashless transactions. Cashless economy includes transactions done through credit cards, debit cards, wallets, cheques, internet banking or any other digital modes. This has become possible only with the advent of internet, smart phones and other digital technologies making it simple and widely used by the people. Also, the ease of conducting transactions has been the main motivator for using digital payment modes at the higher rate. People look at it as most convenient way in their emergency time, travelling time, busy schedules etc. But there are many factors that are limiting the growth of cashless economy.

KEYWORDS: Cashless Economy, Digital Transactions, Demonetization, Government.