Against that, the black-money crackdown will probably dent (or worse) already-fragile property prices, especially in big cities—and so the value of the collateral the banks lend against.
Most economists expect the dislocation to dampen growth in the short-term.
Households will probably put off big-ticket purchases such as motorbikes or white goods.
Jewellers, doctors and others in professions where cash still rules will also be hard hit.
Political parties hoarding cash for election-time handouts to voters will have to tidy up their finances.
Even e-commerce sites like Amazon will be affected: over two-thirds of their sales are settled by the buyers in cash on delivery.
A new, shady line of work is already emerging: opportunists are said to be snapping up 1,000-rupee notes at a deep discount from those with too much stashed cash to declare.
They will profit handsomely if they can find smaller savers willing to swap the old notes for new ones on their behalf, for a fee.
The government has indicated it is gunning for those with suitcases full of rupees rather than merely a few stapled or elastic-banded wads.
Some aspects of the plan are difficult to fathom.
Prominent economists, such as Kenneth Rogoff of Harvard University, are keen to scrap big-denomination notes altogether.
But India will merely replace them.
Worse, it will add a 2,000-rupee series—introducing a note that will have few conceivable uses other than mattress-stuffing, smuggling or gambling (getting change for even a 500-rupee note is already close to impossible) .
The timing is also odd.
India has recently introduced a system that makes it easy for anybody to make or receive payments from their mobile phone, whether they be businesses or individuals.
But the Unified Payments Interface, as it is known, is still in the early stages of implementation, so cannot really help overcome the current cash-crunch.
Mr Modi also took the cash out of circulation just as polls opened in America, eventually roiling markets.
Cancelling banknotes is usually the work of desperate or misguided regimes. This looks different.
Indeed, the assault on black money is justified and overdue.
But governments change the rules on the world’s simplest financial instrument—the humble banknote—at their peril.
Gold is already favoured by those who want to keep their savings beyond the reach of government and taxman.
Gold bugs may feel vindicated; others will have taken note.