Those who travel 'out' and 'in' out of countries (India and wherever one travels to) should know all rules around what one can carry in terms of cash, gifts, items purchased (for customs) etc. some people indicating 50k INR is really over the limit.

To me it's straightforward
- If someone carried more than what they are supposed to, they did it wrong way and it's there loss (just eat up the loss for making a bad decision)
- If someone carried within limits and maybe kept accumulating it overseas through multiple trips -> that's bad financial decision (hoarding cash which doesn't give any bank interest is kind of not good investment decision. I understand keeping cash for emergencies etc. however a 'lot of cash' that too by NRIs doesn't make sense. Especially interest rates in India are good than some other countries, keeping cash makes no sense. Am sure there will be exceptions like one forgets to bring back cash or return Indian currency before leaving in hurry, which might have accumulated more than the limit).

- assuming most OCIs (foreign citizens) or NRIs being out of country are well off (I.e residing in developed countries with exchange rates of 1:~50) the loss is ~500 USD and not sure how many will shed tears for such small amount. Am sure it's hard earned money however either you spend valuable time and money to visit RBI, raise grievances/complaints to get it back or just treat it a loss or bad luck. It doesn't happen frequently in ones life and if it happens number of times then really one is not lucky enough).

Financial risk exists everywhere. Risk is never eliminated the probability is what changes. There is a Risk of keeping cash at home being stolen during burglary. Vice verse even banks can go bankrupt and hypothetically one may not recover ones deposits (yes banks might be insured however even countries economy can go downhill so insurance can become useless - again the risk is miniscule due to probability of everything going downhill for a country is low). Same with currency exchange, do you exchange now or wait for good rates which might take years.

Risk is everywhere, deal with it as your own decision to take that risk, at least partially if not fully.