When a country takes such hilarious and odd decisions then the population suffers. I have seen some friends buying bitcoins for over 900$ its actually around 60000 INR which means around $950 per bitcoins. The demand is more insane for cash deals.
The very corrupted officials will not suffer. They have the inside information and already exchanged the notes.
It's always the same. Those who trust in government or have no choice to escape its reach will pay the bill - well, unless they are part of the officialdom. The effect of the government's decision has been devastating especially for the poorer people. A lot of trust has been eroded. Things could quickly go out of hand for the current ruling class, when large parts of the population are starving, because they could not buy seeds to sow their crops.
Certainly, people will learn from it and seek better alternative to store their funds than fraudulent fiat money subject to arbitrary devaluation. As precious metals as a safe store of value face increasing restrictions by the government, more people will look further and will discover Bitcoin.
The current premium paid is due to limited Bitcoin supply (no major mining operations in India) and generally high inflation of India's fiat currency which makes it highly unattractive even without "special actions" by the central bank.
ya.ya.yo!