The government on Friday extended the use of old high denomination bank notes of Rs.500 and Rs.1,000 denominations until the expiry of November 24, 2016.
The old notes can be used in paying household utility bills, fuel, taxes and fees as well as purchases from co-operative stores.
The following additions to the existing exemptions:
- Old notes can be used to make payment for court fees
- The ID proof of customers will be required for transactions in consumer cooperative stores.
- Payments towards utility bills will be restricted to only individuals households for arrears and current bills. No advance payments will be allowed.
- Payments in toll-plazas of the State and National Highways will be deleted from exemptions.
Governments also said that there is enough cash with RBI and supply of cash to bank branches and ATMs are being stepped up gradually.