Central Government vide Notification No. S.O. 3408(E) dated 08.11.2016 specified that bank notes shall not be ceased to be legal tender, with effect from the 9th November, 2016 until the 11th November, 2016, to the extent of transactions specified below, namely:—
(a) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor’s prescription;
(b) 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;
(d) for purchase at milk booths operating under authorisation of the Central or State Governments;
(e) for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil Marketing Companies;
(f) for payments at crematoria and burial grounds;
(g) 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.
Further Specified Transaction vide Notification No. S.O. 3416(E) Dated 09.11.2016
(i) for making payments in all pharmacies on production of doctor’s prescription and proof of identity;
(j) for making payments on all toll plazas on the State and National Highways;
(k) for payments on purchases LPG gas cylinders;
(l) for making payments to catering services on board, during travel by rail;
(m) for making payments for purchasing tickets for travel by suburban and metro rail services;
(n) for making payments for purchase of entry tickets for any monument maintained by the Archeological Survey of India.
Further Specified Transaction vide Notification No. S.O. 3429(E) Dated 10.11.2016
(o) for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;
(p) for making payments towards utility charges including water and electricity.