Govt. extends exemption upto 15 Dec. 2016 for using existing Rs. 500 & 1000 notes

Government extends exemption for using existing Rs. 500 & 1000 notes

A. Government extends exemption upto 15 Dec. 2016 for using existing Rs. 500 & 1000 notes

Government has reviewed the position and has decided that exemptions for acceptance of Rs. 500 and Rs. 1000 notes will continue till 15 Dec. 2016 with certain additions and modifications, including that only Rs. 500 old currency notes are to be accepted henceforth, as under:

(a) Payments for the transactions under all the exempted categories will now be accepted only through old Rs. 500 notes;

(b)Payment of School fees up to Rs. 2000 per student in Central Government, State Government, Municipality and local body schools;

(c) Payment of fees in Central or State Government colleges;

(d)Payments towards pre paid mobile top-up to a limit of Rs. 500 per top-up;

(e) Purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time;

(f) Payment of current and arrear dues to utilities will be limited to only water and electricity. This facility will continue to be available only for individuals and households;

(g) Considering that the Ministry of Road Transport and Highways have continued the toll free arrangement at the toll plazas up to 2.12.2016, it has been decided that toll payment at these toll plazas may be made through old Rs. 500 notes from 3.12.2016 to 15.12.2016.

(h) Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week. Necessary entry to this effect will be made in their passports. (Necessary instructions in this regard will be issued by the RBI.)

GOI Press Release dt. 24 Nov. 2016

B. Government extends exemption upto 24 Nov. 2016 for using existing Rs. 500 & 1000 notes

The existing exemptions for acceptance of old Rs.500/- and Rs.1000/- notes for certain types of exempted transactions has been further extended by the Govt. from 14 Nov. 2016 to 24 Nov. 2016 mid night.

 FinMin Press Release dt. 11 Nov. 2016

C. Government extends exemption upto 14 Nov. 2016 for using existing Rs. 500 & 1000 notes, with certain modifications to existing exemptions; Governments reassures that enough cash is available with RBI and Supply of cash to Bank branches/ATMs being stepped up gradually

 FinMin Press Release dt. 11 Nov. 2016

While cancelling the legal tender character of the existing series of high denomination bank notes of Rs.500 and Rs.1,000 denominations w.e.f. the expiry of the 8th November, 2016, exemptions were allowed for certain transactions for the first 72 hours with a view to minimizing inconvenience to the public. Subsequently, based on feedback received from various quarters, certain more transactions were included for exemption.

The Government has been closely monitoring the implementation of the decision. Considering various representations received from different quarters in the matter, it has now been decided that the existing exemptions may be extended until the expiry of 14 Nov. 2016, with the following modifications/ additions to the existing exemptions:

(i) Payment for court fees will be included in the exemptions.

(ii) The ID proof of customers will be required for transactions in consumer cooperative stores.

(iii) Payments towards utility bills will be restricted to only individuals/ households for arrears and/ or current bills. No advance payments will be allowed.

(iv) Payments in toll-plazas of the State and National Highways will be deleted from exemptions, considering that the Ministry of Road Transport and Highways is separately issuing instructions in this regard.

There is enough cash with RBI. Supply of cash to Bank branches and ATMs are being stepped up gradually.

D. Govt. bans Rs. 500 and Rs. 1000 notes with exemption for use to make payment for Public Utilities in next 72 Hours

To avoid inconvenience to the public, Govt has announced that for initial 72 hours of ban, the Old High Denomination Bank Notes of Rs. 500 and Rs. 1000 will continue to be accepted at Government Hospitals and pharmacies in these hospitals/ Railway ticketing counters/ ticket counters of Government/ Public Sector Undertaking buses and airline ticketing counters at airports; for purchases at consumer co-operative societies, at milk booths, at crematoria/ burial grounds, at petrol/ diesel/ gas stations of Public Sector Oil Marketing Companies and for arriving and departing passengers at international airports and for foreign tourists to exchange foreign currency at airports up to a specified amount.

 Press Release by FINMIN dt. 8 Nov. 2016

One Response

  1. Asokkumar nagarajan Nov 23, 2016

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