Demonetization refers to an economic policy where certain currency units cease to be recognized as a form of legal tender. The Indian government had demonetized bank notes on three times 1946, 1978 and October-2016. In order to evaluate the impact of demonetization on digital payments, data was collected from May-2016 to October-2017 from NPCI web portal. Exploratory data analysis indicated debit card users increased by 414 percent followed by NEFT by 155 and RTGS by 122 percent. The mobile transaction was seen to have highest CAGR of 3.40 percent. A similar trend followed in case of the value of transactions i.e., the highest growth was in a debit card with 205 percent followed by mobile and NEFT by 193 and 178 percent respectively. Overall, the study concluded that there was a significant effect of demonetization on digital payments.