Note of Rs.500 are still useful

Issuing fresh guidelines on the banned Rs 500, and Rs 1,000 currency notes on Thursday, the Narendra Modi government has stopped the exchange of old notes over the counter at banks from Friday. People will now can only deposit notes in their accounts and then withdraw new currency either through cheques/withdrawal slips or ATMs.

“There will be no over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016,” said the government in a statement.

But, the people can still exchange their old Rs500, Rs1,000 currency notes at the Reserve Bank of India (RBI). The RBI on Friday clarified that it will allow exchange of old Rs 500 and Rs 1,000 notes at its counters up to the limits applicable per person. No last date has been set for such exchanges.

In another significant step, the government has extended the use of old Rs500 note at petrol pumps, government hospitals, and some other public utilities until 15 December. But the Rs1,000 note will no longer be accepted by these utilities.

Here is the list of utilities and services which will still accept the old Rs500 notes:

• Petrol pumps and toll plaza.

• School fees up to Rs2,000 per student in central government, state government, municipality and local body schools.

• Fees in central or state government colleges.

• Pre-paid mobile top-up to a limit of Rs500 per top-up.

• Purchases at consumer cooperative stores such as Safal or milk booths such as Mother Dairy outlets operated under authorisation of central or state governments with identity proof up to Rs5,000 at a time.

• Payment of current and arrear dues to utilities will be limited to only water and electricity and only available to individuals and households.

• Government hospitals for medical treatment and 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.

• Use at international airports for arriving and departing passengers up to Rs5,000.

• 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.

• Payments at crematoria and burial grounds.

• Foreign citizens will be permitted to exchange foreign currency up to Rs5,000 per week. Necessary entry to this effect will be made in their passports. The Reserve Bank of India will issue further guidelines in this regard.

#500 #1000 #demonitisation

News source - livemint.com