On his blog, JP Koning discusses the case of Somalia which has managed without central bank issued money for decades.
Old, legitimate notes and newer, counterfeit notes trade at the same price which equals the cost of producing counterfeits.
See also this previous post.
India follows suggestions to fight tax evasion by taking high denomination notes out of circulation … and introducing new ones. Until the end of the year, Indians may exchange the old banknotes against new ones, at banks or post offices, by identifying themselves. On his blog, J P Koning discusses earlier demonetization episodes in Iraq and Sweden.
India’s move does not exactly follow the well publicized suggestions currently debated. But it might work.