New Delhi, Nov. 6 -- On 8 November 2016, the Indian government announced the scrapping of Rs.500 and Rs.1,000 notes, which then accounted for 86% of the currency in circulation. The main goal was to curb the menace of 'black money' hoarded by tax evaders and crooks. The secondary objectives were to promote digital payments and 'formalize' the economy.

While millions of honest citizens had to queue up outside banks and ATMs to withdraw limited amounts of their hard-earned money, the wealthy found a way to deposit all their ill-gotten wealth through mules. An under-prepared banking system failed to deliver adequate amounts of new notes, leading to an unprecedented cash crunch.

In the initial months, the move was popular among a large sect...