Indian Economy from Cash to Cashless

Cash is like water, a basic requirement of life without which existence of an economy is a challenge. In a country like India almost transaction are based on cash. Government of India launched digital India program with a vision to transform India into a cashless and paperless economy. Digital economy will improve our banking system by supporting financial inclusion. Now customer can use different methods for payment like Mobile Wallets, Plastic Money, Net Banking, Mobile Banking, NEFT, RTGS etc.This paper is discussing about advantages, challenges and drawback of digital transactions. It is found that banks are facing many challenges like lack of digital infrastructure; lack of consumer awareness and lack of security. Advantages of digital transaction are convenience, discount, lower risk, proper spending track of budget etc. Govt and bank should take different step like reducing charges in different e- banking mode, tax rebate for consumers and merchants, controlling cyber crime, boosting consumer confidence in e-banking and adopting policies for promoting digitalisation in India.