The introduction of this denomination of the Indian rupee was part of the government's demonetization exercise aimed at curbing corruption, black money and counterfeit currency.

The intention behind demonetization was to invalidate the old notes to disrupt illegal activities and promote a shift towards digital transactions.

Initially, the circulation of the 2000 rupee note was limited due to the demonetization exercise and the subsequent re-calibration of ATMs and cash distribution systems.

[15][16] In addition, banks were instructed not to issue 2,000-rupee notes and to increase their staff and counters to handle the expected surge in transactions.

While certain BJP lawmakers praised the move as a "second surgical strike on black money," opposition leaders argue that the decision to withdraw notes in 2016 was flawed and that this recent action is an acknowledgment of that mistake.

Following the government's announcement, there were reports of individuals using 2,000-rupee notes to make payments at petrol stations and shops in an attempt to dispose of them.

[22][23] Reserve Bank of India extended the deposit/exchange deadline to 7 October 2023, and thereafter can be exchanged by individuals at the 19 RBI Issue Offices only.

The reverse side features a motif of the Mangalyaan, representing India's first interplanetary space mission, and the logo and tag line for Swachh Bharat Abhiyan.

Languages included on the panel are Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Odia, Punjabi, Sanskrit, Tamil, Telugu, Urdu, and Braille.