The withdrawal of the INR2,000 currency notes is not expected to affect India’s economy, according to analysts. The Reserve Bank of India has decided to stop the circulation of the denomination notes by the end of September, but stressed they will still be legally valid tender. As the cumulative value of the notes in circulation has declined over the years, experts believe that the decision will have a minimal economic impact, particularly as government and banking initiatives have prioritised digital payments infrastructure. Banks though may benefit from better deposit rates in the short term.
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July 28, 2025