The invention provides a system and method for cash transaction digitally between two users. The system includes a smart card by means of which a user can transfer cash digitally to another user when the first user is in close proximity of the smart card. The card contains a communication chip which is capable of receiving user specific details such as, name, age, address, and photograph along with the required cash from a user device. The loading of cash to the smartcard is carried out digitally via user device, which is in communication with the authorized bank. Said Bank assigns each and every smart with a unique ID and associate with the respective user device.