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India's central bank on Friday said that though 2,000-rupee notes - India's highest denomination currency note - would be removed from circulation, they would remain legal.

The Indian central bank'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.

The Indian central bank'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.

India will withdraw its highest denomination currency note from circulation, the central bank said on Friday.

The Indian rupee is expected to open weaker against the U.S. dollar after the central bank said it will withdraw the highest value currency note from circulation.