> Could someone familiar with the matter talk more about what the days/weeks following Modi's announcement looked like for the every day Indian?
People with money sold extra rupees to people below the maximum conversion at a small discount. Bank deposits bumped up, which was the point of the exercise—Indian state-owned banks are woefully uncompetitive and undercapitalised. The line about dirty rupees being extinguished was a farce, mostly because most large-scale illicit activity in India happens with hard currency and/or in Mauritius or Singapore.
I dont think this made a difference - If bank of Indore has given out bad loans under pressure to politically connected people, deposits to HDFC do not fix the liability imbalance.
And then after all of this - we gave out massive loan waivers to farmers yet again.
People with money sold extra rupees to people below the maximum conversion at a small discount. Bank deposits bumped up, which was the point of the exercise—Indian state-owned banks are woefully uncompetitive and undercapitalised. The line about dirty rupees being extinguished was a farce, mostly because most large-scale illicit activity in India happens with hard currency and/or in Mauritius or Singapore.