The primary purpose of this research is to comprehend the effects that India's cashless financial system has had on its small and medium-sized enterprises. The demonetization of strong-denomination currencies has the government of the country ecstatic. The transition from an economy based on cash to a system that depends increasingly on technology for making payments is one of the most feasible company plans for the years to come. Due to the nation's recent decision to demonetize the rupee, every economic transaction must now be completed online. The fast adoption of demonetization hurt the MSME sector, which likes to do business traditionally. The company in question is going to be governed by strict oversight from regulators in order to succeed in the cashless era. Without MSMEs, economic advancements would be detrimental to the economy. In response to shops and customers using digital infrastructure increasingly regularly, a digital economic concept has arisen. The results of the study show how small and medium-sized enterprises in India would be impacted by a cashless society. According to the survey, SMBs may run into issues with both a cashless economy and other alternatives. The results of this investigation were examined utilizing supplementary data and standard methodologies for statistical analysis