The short history of a large note
The HinduThe withdrawal of the ₹2,000 note from circulation by the Reserve Bank of India, which it announced on May 19, 2023, marks the end of a sordid chapter in the tragi-comic demonetisation saga. In the villages, farmers were cheated by criminals as they were paid in fake ₹2,000 notes — they were just high resolution photocopies of the original note. The need for a larger note All this while, the public was stuck with one basic question: if, as the government claimed, most illegal transactions and stocks of cash were in notes of ₹500 and ₹1,000, why did the government release new notes of ₹2,000? Now, with the ₹2,000 note being withdrawn, can a growing economy have the ₹500 note — the next highest denomination — serve as a store of value? Editorial | Slow withdrawal: on the RBI and the ₹2,000 note Alternatively, would a digital currency, an e-rupee, be a perfect substitute for a larger denomination note?