Here’s where you can still use old Rs 500 notes from 3 December
The Modi government has stopped the use of old Rs 500 currency notes from 3 December at petrol pumps and for buying air tickets. Here’s where you can still use the old banknotes
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New Delhi: The Narendra Modi government on Thursday revised the list of exempted places where old Rs500 currency notes were being used for cash transactions till 15 December. With effect from 3 December, old Rs500 currency notes cannot be used for the purchase of airline tickets and automobile fuel. The decision has been taken to curb the misuse of the old notes and to encourage people to switch to cashless transactions and use the new currency in circulation.
Justifying its decision to remove petrol pumps and airline tickets from the list of exemptions, the finance ministry said in a statement, “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.”
The government had earlier stopped the use of Rs1,000 currency notes as legal tender for these two utilities.
Here is the revised list of utilities and services, which will still accept the old Rs500 notes:
• Purchase of LPG gas cylinders.
• 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.
• Purchases at consumer cooperative stores such as Safal or milk booths such as Mother Dairy outlets operated under authorization of central or state governments with identity proof up to Rs5,000 at a time.
• Payments towards court fees.
• 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.
• Payment of current and arrear dues to utilities will be limited to only water and electricity and only available to individuals and households.
• 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 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.
The three places, which will not accept old Rs500 notes from 3 December:
• Petrol, diesel, and gas fuel stations for vehicles.
• Purchase of air tickets from the counter.
• Toll plazas. The roads ministry has decided not to extend their acceptance at highway toll booths. From 3 December onwards, the 365 toll plazas across all the National Highways with point of sale (PoS) machines, e-wallets or new currency.