According to the latest reports the increase in the plastic money is not proportional to the increase in population. Even though many have credit and debit cards with them, they still prefer to use liquid money.
This is the main reason which inhibits the growth of e- money. With this ban of notes, the government has tried to limit the amount of money that can be kept with a individual. The ATM withdrawal limit is also set keeping this in mind. By this move they are assuming that there could significant reduction in corruption and black money.