Demonetisation reduced anonymous cash use, broadened the tax base and accelerated nationwide digitisation of transactions.
Demonetisation aimed to disrupt reliance on high-denomination anonymous cash to reduce cash transactions, enlarge the tax base by removing cash anonymity when funds entered the banking system, and accelerate digitisation of payments; it was not intended as confiscation but to make anonymous cash identifiable and bring more transactions into formal scrutiny.

Public sector bank fragility and rising NPAs are starving credit; decisive recapitalization and insolvency use are needed.
Rising stressed assets, escalating NPAs, weak provision coverage and declining loan growth have left public sector banks under-capitalised, incentivising zombie lending that misallocates credit. India has strengthened recognition and resolution via CRILC, AQR and the IBC, with regulators directing insolvency filings for large aged accounts and higher provisioning for IBC referrals. The remaining deficiency is a prompt, comprehensive recapitalization plan-using public injections, divestment, mergers and market equity-to restore bank capital buffers and revive efficient credit intermediation.

Virtual currency risk: users bear responsibility as central bank disclaims authorisation and warns of misuse vulnerabilities.
The Reserve Bank warns that virtual currencies' anonymity and opaqueness make them susceptible to misuse for laundering and illicit transactions, that they lack underlying asset backing and exhibit high volatility, and that the RBI has not authorised any entity to operate or deal in such currencies, so users and traders engage with them at their own risk while an inter-disciplinary committee examines regulatory responses.