NEW DELHI: Over-the-counter exchange of
high value notes, which were scrapped earlier this month, will stop from Friday, the government announced on Thursday. However, it also extended use of the Rs 500 note for some specific purposes up to December 15. “It has been observed that over-the-counter exchange of old currency notes of Rs 500 and Rs 1,000 denominations has shown a declining trend,” a finance ministry statement said after the
government reviewed the situation .
“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 accounts. This will encourage people who are still unbanked to open bank accounts,” it said.
From November 25 onwards,
old notes can only be deposited in banks until December 30.
The government had permitted various exemptions for certain transactions and activities, such as buying cooking gas cylinders and railway tickets, payments at government hospitals, pharmacies, toll plazas and petrol pumps where payment could be made through old Rs 500 and Rs 1,000 notes up to November 24. It has now decided to extend the use of only the Rs 500 note for these transactions up to December 15. Use of the Rs 1,000 rupee note will not be allowed.
You can also use old Rs 500 notes to pay school and college fees. These entities must be central, state government, municipality or local body schools or colleges. Old notes can also be used for pre-paid mobile topup to a limit of Rs 500.