It failed at the cover story but succeeded in moving a large amount of people way from cash and so increasing government control and surveillance of transactions.
Much of the impact of demonetization was experienced as an acute cash shortage, with restrictions on accessing money in bank accounts and difficulty withdrawing cash from ATMs, whereas actual cash could be exchanged relatively easily on the black market. The lesson learned was, quite correctly, not "keep your money in banks where it'll be safe from future demonetization attempts", but "keep your money out of banks where it'll be safe from future demonetization attempts".
It was a failure on every level.
A big part of what drives the shady payday loan industry in America is the poor's lack of access to the regular banking system.
Tell me again why I should trust banks?
If (?) you agree that it's a bad idea to trust banks, why do you think it's a good idea for everyone to trust banks?
If banks are not trustworthy, everyone who distrusts banks is making the right call. More people making the right call is a net win for society. After all, all society is is a bunch of people.
Banks are not ordinary businesses, this is why they're regulated so heavily. Society needs more bank regulation so that people can trust them more. That is what I am arguing that is good for society.