India's current inflation rate is around 5.7%. The value of money decrease as inflation increase. If India doesn't lower the inflation rate, this banning of Rs.500 & Rs.1000 will paralyze its citizen because they have to carry loads of bills with them.

Nepal inflation rate is higher than India. The current inflation rate of Nepal is around 10.24% which is twice than that of India. In such a high inflation economy, banning NRs. 500 & NRs. 1000 will be a nightmare. In Nepal, what can you buy with Nrs.100? Daily business transaction will be extremely difficult and the Nepal Rastra Bank would have to print enormous amount of 100s which will not be cost effective for them as well. Also, banning 500 and 1000 either in India or Nepal will not help in corruption as there are electronic ways to save your money. In fact, such a decision of banning may have negative effects on rural people who do not have access to banks.

I don't think this was a right move from Modi because he should be focusing more on how to decrease the inflation rate. When Inflation rate is down, the value of money automatically increase and people don't even have to use higher bills for their business transactions as their purchasing power increase.