Indian economy is having tremendous changes in the path of its development. Recently increasing focus on Digital Payments have emerged as a new trend of our economy. Digital Payment is the system through which money can be transferred from one person to another electronically through various electronic modes. Digital Payment system is not a new concept in Indian economy. It started in mid-eighties and early nineties. Reserve Bank of India has taken various initiatives that focused on technology based solutions for the improvement of the payment and settlement system infrastructure coupled with the introduction of the new payment products by taking advantages of the technological advancement in Banks. In this line the Debit and Credit ECS in1990, Electronic Fund Transfer (ETF) in late 1990, NEFT in Nov, 2005, RTGS (Real Time Gross Settlement) in 2009, CCIL (Clearing corporation of India Limited, ATM /POS Terminals / Digital or Online Transactions, Mobile Banking System in Oct, 2008, and National Payment Corporation of India (2009) are working for the efficient and effective E- Payments in India. But in spite of this Digital Payment system did not show any significant growth in our economy especially in retail sector. But after the historical step of Demonetization (Notebandi) in Indian economy on 8th November, 2016 growth in Digital Payment transactions have been seen. This paper aims to discuss the changing scenario of Digital Payments and its growth in India.

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Keywords: Digital Payments, Technology, Transactions, Indian Economy, ETF.