Could you imagine the US Federal Government declaring $50 and $100 notes null and void because drug dealers use them? I'm surprised the Indian people have not revolted against this action -- I'm pretty sure Americans would.
The US government withdrew all bills over $100, but over a very long period of time. The bills were last printed in 1945, and have been withdrawn (destroyed when handed into banks) since 1969. They are still legal tender.
I should have been more clear - I'm not defending demonetization. I'm really, really tired of standing in ATM queues. Just pointing out that black money is a real and serious problem at an almost intractable scale.
