Objective: Demonetization is defined as the act of devastating, a currency unit of its level as legitimate tender. It happens whenever there is a modification in national currencies. Demonetization of high value currency notes is one of the memorable economic occurrences in our country. This study has done an investigation on the drivers that determines the usage of Cashless Payment System among the people in Chennai city. The study has examined the cause & effect relationship between the study variables and analyzed the mediating effect of demonetization of high value currency notes between attitude and behavioral intention to use cashless payment system.

Methods: The study has adopted Technology Acceptance Model (TAM) for constructing Theoretical Framework. This theory explains the user’s acceptance of new system or technology with an existence of various factors that have a greater impact about how to use the technology.

Findings: The study has highlighted that Perceived Usefulness, Perceived Ease of Use and attitude are the observed variables for the behavioral intention of the people to utilize cashless payment systems. The study findings have displayed the model fit. For examining cause and effect relationship between the independent, mediating and dependent variable Structural Equation Modeling has been done. The study has been found out that demonetization of high value currency notes is partially mediating the relationship between attitude and Behavioral intention of people for accessing cashless payment systems.