The Centre on Thursday extended the usage of old Rs 500 notes for payment of public utilities bill till December 15, but people cannot exchange the banned notes any longer. Also, the Rs 1000 notes has been banned from public use from now on including for essential activities listed under the exemptions.
"It has been observed 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," the finance ministry said in a release on Thursday evening.
"This will encourage people who are still unbanked, to open new bank accounts. Consequently, there will be no over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24 November” the release said.
Foreign citizens will be permitted to exchange foreign currency up to Rs.5,000 per week.Entry to this effect will be made in their passports.
People are allowed to make ATM cash withdrawal up to Rs 2,500 per day and Rs 2,000 from select fuel pumps of state-owned oil companies. A savings account holder could withdraw up to Rs 24,000 per week from banks. While current account holders can withdraw up to Rs 50,000 a week, provided it has been in operation for at least three months.
Following are the list of places where the old Rs 500 notes will continue to be accepted till 15 December:
- All government Schools will accept old Rs 500 notes as academic fees up to a limit of Rs 2,000 per student.
- Central or state government colleges will also accept fees in cash in old currency notes.
- Citizens can now recharge their pre-paid mobile phones in old currency up to a limit of Rs 500 per top-up.
- Consumer cooperative stores will also accept old Rs 500 notes, however, there will be a limit of Rs 5,000 at a time.
- Individuals and households can pay current bills and arrear dues in old currency for water and electricity only.