Payments mode used have varied over the years for the purpose of transaction any type of business. From barter to use of gold and silver to IOU‟s to cheques, bank transfers, credit and debit cards, internet transfer and M-transfer. The banks thus become a very integral part of transactions. Bank has very strict norms in terms of issuing debit or credit cards and an economy which function too much on cash found it difficult to have bank accounts and minimum deposits system. Thus large groups of the population are left out of this cashless transaction system. Though many private operators have introduced different new transaction modality to reduce the usage physical legal tenders, out of which e-wallet is one of the new payment gateway. In spite of such a huge market and lots of investment by the e-transaction service providers, it‟s risk to get the return as the people in rural area are not literally advance to access and accept the new payment technology. They have fear of security and trust in doing online transaction. Moving towards a cashless economy is not an easy task in a nation where cash is king.
The study aims to understand the challenges while using e-wallet and the contingencies plan for rural market where still people are either not aware of e-transaction or afraid of moving towards cashless. For the purpose of the study, the sample has been taken from different rural areas of Dhanbad district of Jharkhand.