The Government of India had declared the largest demonetization in Indian history, prohibiting the usage of Rs.500 and Rs.1000 currency notes beginning at midnight on November 8, 2016. Demonetization was executed with the goal of making India a cashless economy, which would be accomplished through digital payments. The goal of this research is to look at how the phenomenon of demonetization affects digitalization. The purpose of this study is to identify the impact of demonetization on different digital payment modes in India. In the research methodology, a paired sample t-test has been used, and the researcher has used secondary data for the period April 2012 to October 2016 as pre and December 2016 to June 2022 as post demonetization, data has been derived from the RBI's official website (Payment System Indicator). Researchers found that there are significant differences in the transaction values of RTGS, NEFT, IMPS, M-Banking, M-Wallet, and Credit Card and Debit Card usage at POS between the pre- and post-demonetization periods. So it can be said that demonetization has played a very important role in making Indian economy as a cashless economy.