What were the two largest denomination notes demonetized by the Government of India?

₹500 and ₹1000

The correct answer is option 2- ₹500 and ₹1000

The Government of India, made an announcement on November 8, 2016 with profound implications for the Indian economy. The two largest denomination notes ₹500, ₹1,000, were ‘demonetised’ with immediate effect, ceasing to be legal tender except for a few specified purposes such as paying utility bills. This led to eighty six per cent of the money in circulation invalid. The people of India had to deposit the invalid currency in the banks which came along with the restrictions placed on cash withdrawals. In other words, restrictions were placed on the convertibility of domestic money and bank deposits.