Smart City is one of the recent researches going on in India to make all the cities as Smart in the near future. This paper discusses about the requirements for smart city and the research challenges and issues in implementation. Machine-to-Machine (M2M) communications is a new type of communication which endows full automation and a promising research for the implementation of smart city. M2M have surmounted the machine to human communication. Recent researches in M2M say that network of 30billion devices willed worldwide in 2020. Supporting these numbers of devices is a challenging task, thus attracting the researchers from both academia and Industry in M2M communication in implementing smart city. The interconnection of Machine Type Devices(MTD) using 3G/ 4G to form a M2M Area Network (M2MAN) which facilitates the M2M applications like smart grid, eHealth, eEnvironmental monitoring, smart city, Smart Home, smart Water Quality, Smart Air Quality etc., integrated into a Single Application named Smart City/Village. Since the M2M uses wireless channel and MTD placed in unmanned environment invites security threats. In this paper, a survey is made on various applications using M2M communication. Also there are lot of challenging tasks in implementing Smart City, Here some of the applications like Smart Water, Structural Health monitoring, Air Quality Monitoring and issues related to implementation were discussed. Also the latest technologies for the implementations are also discussed. Without addressing the challenging issues like security, communication protocol, devices etc., M2M communications for smart city cannot be prophesied.