After the cancellation of legal tender character of old Rs. 500 and Rs. 1000 denomination bank notes, the Government had exempted certain...
After the cancellation of legal tender character of old Rs. 500 and Rs. 1000 denomination bank notes, the Government had exempted certain categories of transactions wherein the old high denomination bank notes were accepted. The Government had extended the exemption period for these categories from time to time. At present, exemptions are allowed on certain types of transactions wherein payment of old Rs. 500 bank notes are permitted up to a specified date.
The processes of production, dispatch and distribution of currency notes have been continuing and more cash is flowing into the system steadily. The digital transactions have also made an impressive progress and are expected to significantly improve during the coming days. Now, therefore, as digital transaction options have been increasing across different sections of the economy, it has been observed that the outlets of the oil and gas marketing companies are better equipped to accept payments through digital means. Hence, it has been decided that with effect from the midnight of 2nd December, 2016, petrol, diesel and gas outlets of Public Sector oil and gas marketing companies will be removed from the exempted category for receipt of old Rs. 500 bank notes.
It may be noted that supply of LPG continues to be in the exempted category for payment through old Rs. 500 bank notes.
Similarly, purchase of air tickets at the airports was included initially in the exempted category. It is observed that air ticketing counters have facilities to accept non cash/digital payments. Further, enough time has been allowed for travelers to be prepared with legal tender and/or non cash modes of payment. It has, therefore, been decided that with effect from midnight of 2nd December, 2016, the exemption allowed for purchase of air tickets at airports through old Rs. 500 notes will be removed from the exempted category.
The other exempted categories that have earlier been notified will continue to accept old Rs. 500 notes as per the said notifications.
- Places where you can use old 500 notes till 02.12.2016 only
- airline ticketing counters at airports for purchase of tickets
- for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil Marketing Companies;
Notification given at the end of the Post.
Updated list of places/payment where you can use old 500 notes as per earlier notifications along with changes made is given below.
- (1) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor's prescription;
- (2) at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses and airline ticketing counters at airports(UP TO 2nd DECEMBER ONLY) for purchase of tickets(;
- (3) for purchases at consumer cooperative stores operated under authorisation of Central or State Governments;( ID proof of customers will be required)(maximum up to 5000/each time)
- (4) for purchase at milk booths operating under authorisation of the Central or State Governments;
- (5) for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil Marketing Companies;(UP TO 2nd DECEMBER ONLY)
- (6) for payments at crematoria and burial grounds;
- (7) 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;
- (8) 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.
- (9) for making payments in all pharmacies on production of doctor’s prescription and proof of identity;
- (10) for making payments on all toll plazas on the State and National Highways (from 3.12.2016 to 15.12.2016 exempted till 3.12.2016)
- (11) for payments on purchases LPG gas cylinders;
- (12) for making payments to catering services on board, during travel by rail;
- (13) for making payments for purchasing tickets for travel by suburban and metro rail services;
- (14) for making payments for purchase of entry tickets for any monument maintained by the Archeological Survey of India.
- (15) for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;
- (16) for making payments towards water, electricity charges
;for making payments towards utility charges limited to water and electricityonly (Payments towards utility bills will be restricted to only individuals / households for arrears and / or current bills. No advance payments is allowed.)
- (17) for making payment of court fees
- (18) payment of seeds at govt seed store
- (18) payment of school fees up to 2000/- rs per student in Center /state/municipal corporation school.
- (19) payment of college fees (center /state govt.)
- (20) payment of prepaid mobile top up maximum 500 per top up.
MINISTRY OF FINANCE (DEPARTMENT OF ECONOMIC AFFAIRS) NOTIFICATION New Delhi, the 30th November, 2016 S.O. 3598(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, with effect from the 3rd December, 2016, in paragraph 1,—
(i) for clause (b), the following clause shall be substituted, namely:—
“(b) at railway ticketing counters and ticket counters of Government or Public Sector Undertaking buses for purchase of tickets;”;
(ii) clause (e) shall be omitted.
[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 numbers 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, S. O. 3490(E) dated the 20th November and S.O. 3544(E) dated the 24th November, 2016.