Centre suspends exchange of Rs 1000 and 500 notes; exemptions for 500 extended till December 15

November 25, 2016, 7:08 am
Centre suspends exchange of Rs 1000 and 500 notes; exemptions for 500 extended till December 15
BUSINESS NEWS
BUSINESS NEWS
Centre suspends exchange of Rs 1000 and 500 notes; exemptions for 500 extended till December 15

Centre suspends exchange of Rs 1000 and 500 notes; exemptions for 500 extended till December 15

The government decided to end over the counter exchange of old Rs. 1,000 and Rs. 500 banknotes from Friday, but the use of Rs 500 notes for certain transactions has been extended till 15 December.

After reviewing the cash supply situation on Thursday, the government decided to allow payments for certain transactions using the old Rs 500, such as public utility bills of water and electricity. However, this is limited to individuals and households, the statement said. However Rs 1,000 notes will no longer be accepted.

It has further been felt that people may be encouraged and facilitated to deposit their old Rs 500 and Rs 1,000 notes in their bank account... Consequently, there will be no over-the-counter exchange of old Rs 500 and Rs 1,000 notes after midnight of 24.11.2016
Finance Ministry statement 

No changes were announced regarding the deposit of these high value notes in banks accounts, deadline for which remains December 30. People will need to furnish their PAN card details if the total deposit amounts to over Rs 2.5 lakh after December 30

The current limit on withdrawal of upto Rs 24,000 per week per bank account also remains unchanged. ATMs can be used to draw upto Rs. 2,500 a day per card. Less than half the country's two-lakh ATMs have been reconfigured to handle the new currency which is larger than the old bills in size

Finance Minister Arun Jaitley conferenced via video with the chiefs of major banks this evening to review their preparedness.

The payment of fees up to Rs 2,000 per student using the old Rs 500 notes in schools under the central and state governments, municipality and local bodies is also allowed according to notifications issued on Thursday. These notes can also be used to pay fees at central or state government colleges.

The scrapped notes can also be used for topping up pre-paid mobile accounts to a limit of Rs 500.

The government has also allowed foreigners to exchange currency up to Rs 5,000 per week, records of which will be registered against their passports and other documents.

Till December 15, you can still use old 500 rupee notes at:

  • Payment at toll plazas and petrol pumps.
  • Payment of school fees up to Rs. 2,000 per student in central government, state government, municipality and local body schools.
  • Payment of fees in central or state government colleges.
  • Payments towards pre-paid mobile top-up to a limit of Rs. 500 per top-up.
  • Purchases at consumer cooperative stores operated under authorisation of central or state governments with identity proof (Safal, Mother Dairy) up to Rs. 5,000 at a time.
  • Purchases at milk booths under central or state governments.
  • Payment of current and arrear dues to utilities will be limited to only water and electricity.
  • Payments in government hospitals for medical treatment.
  • Use in all pharmacies for buying medicines with doctor's prescription.
  • At railway ticketing counters, bus ticket counters of government or public sector undertakings and airline counters at airports for purchase of tickets.
  • Payments at crematoria and burial grounds.
  • Use at international airports for arriving and departing passengers up to Rs. 5,000.
  • Purchase of LPG gas cylinders.
  • Payments towards on-board catering during travel by rail.
  • Purchase of tickets for suburban and metro rail travel.
  • Purchase of entry tickets monument maintained by the Archaeological Survey of India.
  • Payments towards fees, charges, taxes or penalties, payable to central or state governments including municipal and local bodies.
  • Payments towards utility charges including water and electricity, but no advance payments.
  • Payments towards court fees.
  • Payments towards purchase of seeds from designated state-run outlets.