With inflation slowly eating away at the value of the Pakistan Rupee, there has been a change in which currency notes people choose to carry with them. For a variety of reasons the Rs. 500 note is now replacing the Rs. 100 note as the most convenient note to carry with you when going shopping for daily essentials.
Availability: Getting small denomination notes has always been difficult. They are always in high demand and difficult to get large amounts of. Even banks don’t have large amounts of Rs. 100 notes for their retail clients. This coupled with the fact that ATMs only spew out Rs. 1000 and Rs. 500 notes means that the Rs. 500 is the best note.
Medium value: Inflation has meant that almost every shopping trip results in more than a few hundred rupees of expense. Multiple Rs. 100 notes are not convenient to carry in your pocket. So the Rs. 500 note has a good middle value.
Ease of getting change: As mentioned before change is hard to come by and most vendors will not break a Rs. 1,000 note for small purchases. But almost all vendors are now used to providing change for Rs. 500 notes even for sub-hundred rupee purchases.
So for all of these reasons the Rs. 500 note is now the most convenient note to carry.
In Bangla Desh they issue a not of 1 Billion. Now just look at to the value of a note there. This is what you call Deflation in Money.