To encourage people to deposit old Rs 500 and Rs 1000 notes in their bank accounts, the government has stopped the counter exchange of old Rs 500 and Rs 1000 notes after midnight of November 24, 2016.
This move will encourage people who are still unbanked, to open new bank accounts.
Government had also permitted various exemptions for certain transactions and activities wherein payment could be made.
Note that payments for the transactions under all the exempted categories will now be accepted only through old Rs 500 notes.
1. Individuals, parents can make payment of School fees up to Rs 2000 per student in Central Government, State Government, Municipality and local body schools.
2. Payment of fees in Central or State Government colleges.
3. Individuals can make payments towards pre paid mobile top-up to a limit of Rs 500 per top-up.
4. People are allowed to purchase from Consumer Cooperative Stores which will be limited to Rs 5000 at a time.
5. Payment of current and arrear dues to utilities will be limited to only water and electricity. This facility will continue to be available only for individuals and households.
6. It has been decided that toll payment at these toll plazas may be made through old Rs. 500 notes from 3.12.2016 to 15.12.2016.
7. Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week.
8. Airline counters at airports, petrol pumps.
9. Railway ticketing counters, bus ticket counters of government or public sector undertakings.
10. All pharmacies, with doctor's prescription.