For those with a traumatic memory recollection of 2016’s demonetization announcement (which banned 80% of the money supply circulating in the form of ₹500 and ₹1000 notes), this particular RBI announcement may in theory seem to offer people time, options, and reason for depositing/exchanging the denomination in question.
But look at it this way, what if a person or a business firm that operates largely on cash-based reserves has lacs of ₹2000 based currency reserves (and most firms in India still do-particularly in a largely unorganised economy to pay up for labor charges/working capital needs).
Also, those operating their business still reliant on cash, say in real estate or property-related transactions, the announcement will surely cause significant trouble (given more than 50% of their everyday business is still large cash-reliant). I am guessing that the announcement will also result in a difficult quarter for much of the real estate and construction business sector from…