Press Information Bureau
Government of India
Ministry of Finance
11-November-2016 19:14 IST
Government extends existing exemptions with rergard to cancellation of the legal tender character of the existing series of high denomination bank notes of Rs.500 and Rs.1,000 denominations until the expiry of 14th November, 2016, with certain modifications / additions to the existing exemptions; Governments reassures that there is enough cash with RBI and Supply of cash to Bank branches and ATMs are being stepped up gradually.
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.
16 Exception to use of old Rs. 500 and 1000 Bank Notes
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 14th November, 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.
RELATED GOVERNMENT NOTIFICATION IS AS FOLLOWS :-
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 11th November, 2016
S.O. 3445(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 11th November, 2016” occurring at both places, the words, figures and letters “the 14th November, 2016” shall be substituted.
2. In the said notification, in paragraph 1,‑
(i) in clause (c), after the word “Governments”, the words “and the customers shall provide their
identity proof” shall be inserted;
(ii) clause (j) shall be omitted;
(iii) in clause (p), after the word “electricity”, the words “which shall be restricted to individuals or households for payment of only arrears or current charges and no advance payments shall be allowed” shall be inserted;
(iv) after clause (p), the following clause shall be inserted, namely:
“(q) for payments towards court fees.”.
3. In the said notification, after paragraph 2, the following paragraph shall be inserted, namely:
“3. The Reserve Bank of India shall issue guidelines for exchange of specified bank notes in Nepal and Bhutan.”.
[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 under S.O. 3408(E) dated the 8th November, 2016 and subsequently amended vide notification numbers S.O. 3416(E) dated the 9th November, 2016 and S.O. 3429(E) dated the 10th November, 2016.
List of Related Notification by Ministry of Finance is as follows :-
