Decoding the problem of currency denomination, in 6 charts
With ₹2,000 notes being withdrawn from circulation nearly seven years after being launched, cash transactions for large amounts will need more banknotes than before
The ongoing withdrawal of ₹2,000 banknotes from circulation leaves ₹500 as the highest currency denomination in India. In the absence of a ₹1,000 note, large cash transactions are set to become the toughest they have been in decades as we will need more spacious (read thicker) wallets. Barring that inconvenience, the disruption to our lives is much smaller than the one seen when the note was introduced after the 2016 demonetization, because notes of ₹2,000 were just 10.8% of all notes in circulation by value as of 31 March. How do denominations work in other economies, and how does the ₹2,000 withdrawal change India's currency dynamics?