No. Trust is not the issue here.

Those people who have just a few thousand rupees in cash, can easily can get them exchanged at the bank account, provided they can show valid ID while doing so . Nobody is losing any money, you just give your old notes, which are now just paper, and get new new notes of higher denomination , which are legal tender.

Those who have bundles of 500 notes can also get them exchanged at the bank account, provided they can show valid ID while doing so. The banks can then have data on who deposited what and when, thus the huge amount of money they were hiding will show up against their name and they will be subject to investigation. Now, for the guys who have an obscene amount of loose cash in their hands(seriously, some of these hoarders have cash hidden inside their walls, picture Walter White in Breaking Bad l) this is very difficult, because you can only deposit so much money without raising suspicion, therefore, the rest of money is basically decorated paper with Gandhijis face on it. *

A small inconvenience for an honest man, is a giant pain in the ass for the politicians and the mafia.

NotNiel Armstrong *