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Explained: Why Rs 2,000 Note Was Introduced, And Why It's Being Junked

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Exchange of Rs 2000 Notes: The Rs 2,000 banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934 -- which allows the central bank to issue notes of any denomination not exceeding Rs 10,000 -- primarily to meet the currency requirement of the economy "in an expeditious manner" after the big demonetisation exercise, in which the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time was withdrawn, the Reserve Bank of India has said.

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