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Due to the technological advancement in monetary sector, the payments in banking industry have undergone a remarkable transformation. The innovative products for creating payments have been developed subsequent to the privatization and globalization. Customers have showed their preference over the usage of the plastic money typically over a period of time within the banking process. Plastic money is a substitute to the cash or benchmark money. Plastic money refers to the credit cards or the debit cards that we tend to use to form purchases. Other different kinds of plastic cards provided by banks in India are ATM cards, Smart cards. This study presents a summary of the event of banking within the plastic cards usage trends since these are introduced in Indian banking sector. The study conjointly highlights the role of those cards as electronic payment tool to be employed by customers and discusses the penetration of those cards in replacement of cash and paper money. The study is carried out by taking a survey of 100 respondents by Convenient Sampling Technique from the city of Vellore by using a structured questionnaire and interview technique. The factors that influence for adoption of plastic money in substitution of cash has been identified which reflects the preference of customers towards plastic cards over paper money. Some future plans developed by different banks and institutions for avoiding the frauds arisen owing to the credit and debit cards also are mentioned in way that it depicts the image of its future growth and prospects in India. [ABSTRACT FROM AUTHOR]