Demonetization is a process by which a series of currency will not be legal tender. The series of currency will not acceptable as valid currency. The same thing happens with the Rs. 500 and Rs. 1000 note demonetization. Moreover, the limit of withdrawal has not been kept at a higher level. This is the turning Step taking India towards digital transactions. India is largely a cash economy. The cash transactions in this economy are far more than the total number of electronic transactions done on a daily basis. Though the Epayment systems are available, people are not using them. They are habituated to use liquid cash. Non availability of hard cash makes them compulsory to use various devises of E-payment system. The biggest speed-breaker in this path is Illiteracy and knowledge regarding digital devices.