A cashless economy is one with minimum circulation of physical currency. Complete absence of physical currency is still an imaginary situation for India since most technologically advanced economies of the world are still running on partially cashless system. Government of India is pushing Indian economy toward a cashless system post demonetization to curb the challenges of black money in the economy. But is India actually responding to government initiatives to digitalize the economy? Does India possess at present the necessary and sufficient infrastructure to support digital mediums of transactions? There is enormous scope for digital activities in the country but so far, the progress is not satisfactory. There are some steps that government must take to ensure cashless economy in near future.