Why does RBI withdraw ₹2000?

 RBI withdraws Rs 2,000 notes from circulation, asks all to exchange or deposit them by Sept 30

RBI India said it has asked banks to stop n a statement, the Reserve Bank of issuing Rs 2,000 notes with immediate effect

RBI Rs 2000 note RBI has decided to withdraw the Rs 2,000 note from circulation

The Reserve Bank of India has decided to withdraw Rs 2,000 denomination banknotes from circulation and asked all to exchange or deposit them by September 30,2023.

In a statement released on Friday, the central bank stated: “In pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2000 denomination banknotes from circulation. The banknotes in ₹2000 denomination will continue to be legal tender. To complete the exercise in a time-bound manner and to provide adequate time to the members of public, all banks shall provide deposit and/or exchange facility for ₹2000 banknotes until September 30, 2023.”