The US government withdrew all bills over $100, but over a very long period of time. The bills were last printed in 1945, and have been withdrawn (destroyed when handed into banks) since 1969. They are still legal tender.

https://en.wikipedia.org/wiki/Large_denominations_of_United_...

So here we have the same motivation -- but a quite different implementation.

Instead, India could require all cash transactions over $10,000 to be reported. This is how the US actually catches money laundering via cash.