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.
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