The Government demonetised ₹1000 and ₹2000 banknotes a few years back as part of a campaign against “black money”. The Government’s thinking was that criminal organisations hoarded large amounts of cash in these large-denomination notes, and by forcing everyone to deposit the notes immediately into the bank, it would bring light to the flow of money.
It was not particularly successful and mostly all it did was lead to a week of chaos and long queues outside banks.