This is a once in a lifetime event. It is very rare to remove 86% of the currency in circulation in one go. The logistics of such an operation are mammoth.
We should redefine the metric for effective lending, viz., prioritise loans to enterprises, which will generate more employment.
There are tens of thousands of bank branches and 4,000 currency chests. We need to be careful and try that this is a number which is not a mere estimate but a verified number both physically and in the accounting sense.
The lack of a consistent policy from major economies is the main source of volatility.
One of the things that the public sector banks need to do is to raise private capital from the market and not rely on government largesse.
From the RBI side, the fake Indian currency note is an important issue that needed to be addressed. The other collateral benefits from this, in terms of greater accountability, better public finance, more transparency, are, by definition, areas that take time to fully play out.