Demonetisation is a revolutionary step made by the government to curb the black economy, counterfeit currency, terror financing and corruption. The introduction of new series of notes could provide an opportunity to tackle counterfeiting terror financing and black money. It can catalyse long term economic reform. Low Inflation, more affordable real estate and possibility of lower tax rates as the net tax base could become wider are among the fruits of demonetization which reap in the long-run. Black money places an unfair burden on honest citizens of the country. This paper discusses the economic impact of demonetization on digitalization of Indian Economy and gave suggestion to improve the digital structure in India.