So, Indians now have until the end of December to deposit these higher denomination bills into the bank before they are rendered useless. You can’t just make a deposit, though. You’ll need to show a government ID before you can make one. And, if you have any sizable amount you’ll doubtless be immediately investigated for theft … sorry, tax evasion.
If the 1,000 and 500 rupee is “declared illegal,” that just leaves the 100 rupee note, which is currently worth $1.40. In other words, if you want to use cash in India, get out your backpack.
This is another in the long line of attacks in the war on cash. They’ve talked the Nordic countries into just using debit/credit cards instead of cash. In Greece, they just closed the banks for months and put in place capital controls. In Cyprus they closed the banks one weekend and by the time they reopened, large depositors only had half of what they’ve had before.
As the war rages on, you won’t want to have any substantial portion of your savings or assets in fiat currencies. Especially if they become digitized fiat currencies which are even more susceptible to bank bail-ins like what we saw in Cyprus.