Demonetisation: No more note exchange at banks

New Delhi: The Centre abruptly barred the exchange of demonetised Rs 500 and Rs 1,000 notes at bank counters on Thursday, in another one of the many changes in norms and rules since Prime Minister Narendra Modi announced the demonetisation move on November 8.

The government, however, extended the use of old Rs 500 notes at exempted categories like petrol pumps, for buying LPG and at co-operative stores till December 15.

The use of old Rs 1,000 notes to pay for these utilities is no longer permitted. People can still deposit their old Rs 500 and Rs 1,000 notes at their banks and withdraw money up to the specified limit.

The Centre has also, once again, tweaked exemptions to its move. People can now use old Rs 500 notes for pre-paid mobile top-up to a limit of Rs 500 per top-up.

As per the new rules, old Rs 500 currency notes can be used for the payment of school fees upto Rs 2,000 per student in Central government, state government, municipality and local body schools. These notes can also be used for the payment of fees in Central and state government colleges.

Purchase from consumer co-operative stores by using old currency will be limited to Rs 5,000 at a time.

The payment of current dues in utility bills by using old Rs 500 notes will be limited to only water and electricity. This facility will continue to be available only for individuals and households.

The government extended the date for toll exemption on national highways till December 2 midnight.

“Considering that the ministry of road transport and highways have continued the toll free arrangement at the toll plazas up to 2nd December, it has been decided that toll payment at these toll plazas may be made through old Rs 500 notes from 3rd December to 15th December,” said the finance ministry.

Foreign citizens will be permitted to exchange foreign currency up to Rs 5,000 per week. An entry will be made in their passports regarding the exchange. The RBI will issue a notification on this soon.