No more exchange of Rs 500 and Rs 1000 notes, Centre announces


NEW DELHI: Tightening its demonetisation policy, the Centre has announced that it would no longer allow over-the-counter exchange of old Rs 500 and Rs 1000 notes from Saturday. Another major aspect of the announcement was that the only way to use the old Rs 1000 notes would be to deposit them in a bank account.

“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,” read a government statement announcing the move.

“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,” the statement added.

The announcement comes a day after the Reserve Bank of India issued a circular to all banking institutions asking them to take steps to ensure their staff members do not subvert the rules by facilitating exchange of currency notes illegally.

The Centre also announced that some of the exemptions that are in place for the use or exchange of the old currency notes would be extended till December 15. It however tightened the squeeze, saying the exemptions would only accept the use of the old Rs 500 notes. This means Rs 1000 notes will now be accepted only for deposits into bank accounts.

Payment of utility bills and arrears will continue to be accepted, but these payments have now been limited to water and electricity, and that too only for individuals and households.

News Source: TOI

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