5 years later, it’s even more clear that demonetisation was a disaster for India By Arun Kumar  https://www.cenfa.org/media-coverage/5-years-later-its-even-more-clear-that-demonetisation-was-a-disaster-for-india/  | November 12, 2021 

This author had estimated in June 2017 that by January 10, 2017, 99% of denotified high denomination notes had been returned to the banks. This was confirmed by the Reserve Bank of India in August 2017. Where was the balance 1% of the currency – in cooperative banks and abroad? In other words all the old currency was accounted for.

In brief, demonetisation neither eliminated black money nor stopped black income from being generated.

Cash to the economy is like blood which supplies nutrients to all parts of the body. Cash circulation enables transactions to occur, which help generate incomes. If 85% of the blood is taken out of the body and 5% replaced every week, the body will die. The major component of the Indian economy is the unorganised sector, employing 94% of the workforce. It consists of the micro and small units which work with cash and not through formal banking. While the organised sector was hit due to shortage of demand as people lost incomes, the unorganised sector just could not function without cash.