Mumbai: By Thursday, December 15, the government will have completed a total phase out of old high denomination (OHD) currency notes in circulation as the exemption extended to Rs 500 notes for use at select outlets including petrol pumps, toll plazas, LPG centres, paying public taxes comes to an end on the day.
Post December 15, only banks will accept old Rs 500 notes only in the form of deposits. The facility of over-the-counter exchange of these notes has already been withdrawn. This come weeks after government prematurely scrapped ‘extended’ legal tender status of Rs 1,000 currency notes on November 24.
The development expected to add to the woes of the general public as even after over a month when the specified notes were banned, people still remain in long queues outside banks and teller machine kiosks to withdraw cash.
The ban on OHD currency notes wiped out 86 per cent of total currency in circulation leading to a severe cash crunch in country and ending people up with no or less cash in hand.
The government on Tuesday revealed that banks received around Rs 12 lakh crore in deposits from November 10 to December 10. On November 8, the government scrapped Rs 1,000 and Rs 500 notes as part of its crackdown against black money and fake currency notes. Around Rs 4 lakh crore were withdrawn through ATMs and cheques during the period mentioned.
