Explainer: What India’s decision to scrap its 2000-rupee note means for its economy

While the government did not specify the reason, analysts point out that it comes ahead of state and general elections in the country when cash usage typically spikes.

India will withdraw its highest denomination currency note from circulation, the central bank said on Friday. The 2000-rupee note, introduced into circulation in 2016, will remain legal tender but citizens have been asked to deposit or exchange these notes by Sept. 30, 2023.