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Could rising currency in circulation be a reason for the withdrawal of Rs 2000 notes?

Banknotes in circulation are now 15.1 percent of money supply, compared to 13.7 percent in the September 2016 quarter

RBI s decision to withdraw Rs 2,000 notes to improve liquidity, ease short-term rates: report

The Reserve Bank of India's decision to withdraw its highest denomination currency note from circulation is likely to improve banking system liquidity, bringing down recently elevated short term rates, analysts and bankers said.

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