On Thursday evening, the Government extended all old currency note utilization exemptions till December 15 with only 500 Rs notes

The statement said :

“The payments for the transactions under all the exempted categories will now be accepted only through old Rs 500 notes.”

This implies that Rs 1000 notes will now be only valid for deposits into account.

The government said the decisions were taken after “after due consideration of all relevant aspects”. It was also decided that payment of fees up to Rs. 2000 per student can be made using old Rs 500 notes in Central Government, State Government, Municipality and local body schools. Central or State Government colleges will also accept scrapped Rs.500 notes.

Also for pre-paid mobile top-up, old note payments with a cap of Rs. 500 per top-up will be accepted. The payment of current and arrears dues to utilities will be limited to only water and electricity.

Also purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time.

For foreign citizens, the government said exchange of foreign currency up to Rs. 5000 per week will be permitted. “Necessary entry to this effect will be made in their passports,” the statement said, adding that instructions in this regard will be issued by the RBI.

The government reasoned that over the counter exchange of the old currency notes of Rs. 500 and Rs. 1000 denomination has shown a declining trend.

“It has further been felt that people may be encouraged and facilitated to deposit their old Rs. 500 and Rs. 1000 notes in their bank accounts,” it said, adding that this will encourage people who are still unbanked, to open new bank accounts.

As per the statement issued by the government on November 8, following the demonetisation announcement by Prime Minister Narendra Modi, exchange of old bank notes was allowed till December 30.

 

Read conclusion of the ban on notes in these points :

 

  • The government has decided that from tomorrow, the outlawed notes can no longer be exchanged for new ones at bank counters.
  • So far, people could do a one-time swap of upto 2,000 rupees.
  • The government has decided to do away with the trade-in to shift focus to encouraging people who currently do not have accounts to open them and deposit the abolished notes.
  • Old notes can be deposited till the end of the year.
  • The current limit on withdrawal of upto Rs. 24,000 per week per bank account 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.
  • Current exemptions have been extended till December 15. That means petroleum pumps and state-run hospitals will continue to accept the old notes till then.
  • Water and electricity bills can also be paid with the old currency till December 15.
  • The RBI has doubled the limit on digital transactions through e-wallets like Paytm to Rs. 20,000 per month.

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Source : NDTV , Indian Express,