After due consideration of all relevant aspects, the Central Government takes various decisions relating to certain operational aspects of the Scheme relating to cancellation of legal tender character of old Rs. 500 and Rs. 1000 notes; No over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016;.Certain other exemptions continued till 15th December, 2016 with certain additions and modifications.

The Central Government has been reviewing the issues related to the cancellation of legal tender character of old Rs. 500 and Rs. 1000 notes. The Government has also been receiving various suggestions in this regard. After due consideration of all relevant aspects, the following decisions relating to certain operational aspects of the Scheme have now been taken:

(i) 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. 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 24.11.2016.

this-is-not-ban-on-notes-its-exchange-of-notes

(ii) Government had also permitted various exemptions for certain transactions and activities wherein payment could be made through old Rs. 500 and Rs. 1000 notes. It has been decided that all these exemptions, with the additions and modifications as detailed below, may be continued for a further period from the midnight of 24.11.2016 up to and inclusive of 15.12.2016 :-

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

Additions / Amendment to list from 25.11.2016 and valid up to 15.12.2016

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

2) Payment of fees in Central or State Government colleges;

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

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

(5) 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;

(6) 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.

(7) 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.)

Exemption already  exist and valid upto 15.12.2016

(8) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor’s prescription;

(9*) at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses and airline ticketing counters at airports for purchase of tickets;

(c) for purchases at consumer cooperative stores operated under authorisation of Central or State Governments and the customers shall provide their identity proof;

(10) for purchase at milk booths operating under authorisation of the Central or State Governments;

(11) for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil and Gas Marketing Companies;

(12) for payments at crematoria and burial grounds;

(13) at international airports, for arriving and departing passengers, who possess specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character;

(h) for foreign tourists to exchange foreign currency or specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character.

(14) for making payments in all pharmacies on production of doctor’s prescription and proof of identity;

(15) for payments on purchases LPG gas cylinders;

(16) for making payments to catering services on board, during travel by rail;

(17) for making payments for purchasing tickets for travel by suburban and metro rail services;

(18) for making payments for purchase of entry tickets for any monument maintained by the Archaeological Survey of India.

(19) for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;

(o) for making payments towards utility charges including water and electricity -which shall be restricted to individuals or households for payment of only arrears or current charges and no advance payments shall be allowed

(20) for payments towards court fees

(21) for making payments towards purchase of seeds from the centres, units or outlets belonging to the Central or State Governments, Public Sector Undertakings, National or State Seeds Corporations, Central or State Agricultural Universities and the Indian Council of Agricultural Research, on production of proof of identity: Provided that for the purposes of this clause, specified bank notes shall mean bank notes of the denominational value of five hundred rupees.

Related Notification is as follows :-

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 24th November, 2016

S.O. 3544(E).— In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby further amends the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3408(E) dated the 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) dated the 8th November, 2016, namely:—

1. In the said notification, in paragraphs 1 and 2, for the words, figures and letters “the 24th November, 2016”, occurring at both places, the words, figures and letters “the 15th December, 2016” shall be substituted.

2. In the said notification, in paragraph 1,—

(i) in clause (c), after the words “Central or State Governments”, the words “up to a limit of Rs. 5000/- at a time” shall be inserted;

(ii) clauses (g) and (h) shall be omitted with effect from 25th November, 2016 (midnight of 24th November, 2016);

(iii) for clause (p), the following clause shall be substituted, namely:— “(p) for making payments towards water, electricity charges;”;

(iv) in clause (r), proviso shall be omitted with effect from 25th November, 2016;

(v) after clause (r), the following clauses shall be inserted, namely :—

“(s) for making payments towards school fees up to a limit of Rs. 2000/- per student in the Central Government, State Government, Municipality or Local Body schools;

(t) for making payments towards fees for the Central Government or the State Government colleges;

(u) for making payments towards pre-paid mobile top-up up to a limit of Rs. 500/- for every top-up;

(v) for making payments at the toll plazas under National Highways Authority of India including concessionaires, with effect from 3rd December 2016:

Provided that, with effect from 25th November, 2016, for the purposes of all clauses of this paragraph, specified bank notes shall mean bank notes of the denominational value of five hundred rupees only.”.

[F. No. 10/03/2016-Cy. I ]

Dr. SAURABH GARG, Jt. Secy.

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 3408(E) dated the 8th November, 2016 and subsequently amended vide notification number S.O. 3416(E) dated the 9th November, 2016, S.O. 3429(E) dated the 10th November, 2016, S.O. 3445(E) dated the 11th November, 2016, S.O. 3447(E) dated the 13th November, 2016, S.O. 3448(E) dated the 14th November, 2016, S. O. 3480(E) dated the 17th November, 2016, S.O. 3489(E) dated the 18th November, 2016 and S.O. 3490(E) dated the 20th November, 2016.

 

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4 responses to “Transactions for which payment in old Rs. 500 notes valid till 15.12.2016”

  1. Sajid says:

    For doing all this, the Govt must LIFT THE CEILING OF WITHDRAWAL FROM BANKS. Automatically, the money will be in circulation among common man.

  2. Prakash Krishnan says:

    Modi Ji

    Namaste, Namaste, Namaste.

    In one stroke you have made the corrupt and dishonest to kneel before the poor to get their money changed. This is another election bonanza for the poor and needy.

  3. Anil Kumar says:

    Wonder whether there is a loophole! Perhaps Petrol Pump and toll bridge owner’s are blessed. Chances are good in hoarding smaller denominations and depositing the already hoarded larger denominations! They can even act as commission agents for black money! Whatsoever, I really feel good about the plight of the black marketeers.

    • Brij Gupta says:

      There could be a loop hole in case of petrol pumps, Milk Booths, Safal Vegetable shops in case the sale is not based on cash deposit being matched with billing of the amount equal or above denominations of Rs.1,000 or Rs.500 tendered by customers. Some petrol pumps account for their sale based on dip system and not on cash memos. Good chances of converting black money by replacing collection made in small currency and depositing demonetised notes.

      A good case for the Government to investigate.

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