Indian government bond yields declined on Monday after the Reserve Bank of India announced it will withdraw the highest denomination Rs2,000 note from circulation. The decision is expected to improve banking system liquidity and bring down short-term rates, according to reports. Analysts predict that on a net basis, deposits could rise by between INR 1.5tn ($23bn) and INR 2tn while durable liquidity could increase by roughly INR 1tn.