The Indian government has decided to withdraw the Rs 2000 denomination banknotes from circulation. This decision was not sudden, as these notes were introduced in 2016 and were expected to have a lifespan of 4-5 years. However, there have been recommendations from various quarters, including political parties like TDP, to withdraw these notes. The government observed that Rs 2000 notes are mostly held by big industrialists or political parties and are not commonly used for transactions. Banks also have enough stock of other denominations to meet currency requirements. Rs 2000 notes have not been withdrawn with immediate effect, and those who have them can deposit them in banks with a limit of up to Rs 20,000 per day till September 30. This could help tackle black money and may cause problems for political parties that distribute money for votes.
