he government has stopped the exchange of old notes over the counter at banks from Friday. People will now have to deposit banned notes of Rs. 500 and Rs. 1,000 in their accounts and then withdraw new currency from ATMs or through cheques.
“There will be no exchange of old Rs. 500 and Rs. 1,000 notes after midnight of November 24,” the government said on Thursday evening. But it has extended the use of old 500 notes at petrol pumps, government hospitals and some other public utilities till December 15.
The banned 1,000-rupee note can now not be used at these utilities.
Prime Minister Narendra Modi had in a sudden announcement on November 8 pulled the high value notes in an attempt to curb black money and money laundering.
The government had at the time allowed a one-time over the counter exchange of 4000 rupees, giving people time till December 30 to deposit the rest of the cash they were holding in bank accounts. The limit for the over-the-counter exchange was lowered to Rs. 2000 last week, amid a massive cash crunch after the demonetisation.
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.