On May 19, 2023, the Reserve Bank of India (RBI) announced that the Rs 2000 denomination banknotes will be phased out of circulation. While existing notes remain legal money, the RBI has extended the deadline for depositing or exchanging them until September 30, 2023. This judgment has sparked several inquiries and debates around the country. In this post from a reputed chartered accounting firm in India, CA Chandan Agarwal & Co . , we discuss the reasons behind this decision. Why Did The Reserve Bank Of India Ban The 2000 Rupee Note? Controlling Black Money - One of the primary motivations for banning the 2000 rupees note is to address the issue of black money, which refers to unknown income or wealth that avoids taxation. The government wants to decrease the storage of unknown funds by banning the usage of 2000 rupee notes, which become a threat among individuals engaging in illegal businesses. Boosting Digital Transactions - This effort reflects the government