Old Rs.500 banknotes - Exemptions for certain additional transactions of School College fees and Mobile Recharge
After due consideration of all relevant aspects, the Central
Government takes various decisions relating to certain operational
aspects of the Scheme relating to cancellation of legal tender character
of old Rs. 500 and Rs. 1000 notes; No over the counter exchange of old
Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016;.Certain other
exemptions continued till 15th December, 2016 with certain additions and
modifications.
The Central Government has been reviewing the issues related to the
cancellation of legal tender character of old Rs. 500 and Rs. 1000
notes. The Government has also been receiving various suggestions in
this regard. After due consideration of all relevant aspects, the
following decisions relating to certain operational aspects of the
Scheme have now been taken:
(i) 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. 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.
(ii) Government had also permitted various exemptions for certain
transactions and activities wherein payment could be made through old
Rs. 500 and Rs. 1000 notes. It has been decided that all these
exemptions, with the additions and modifications as detailed below, may
be continued for a further period from the midnight of 24.11.2016 up to
and inclusive of 15.12.2016 :-
(a) Payments for the transactions under all the exempted categories will now be accepted only through old Rs. 500 notes;
(b) Payment of School fees up to Rs. 2000 per student in Central
Government, State Government, Municipality and local body schools;
(c) Payment of fees in Central or State Government colleges;
(d) Payments towards pre paid mobile top-up to a limit of Rs. 500 per top-up;
(e) Purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time;
(f) 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;
(g) Considering that the Ministry of Road Transport and Highways have
continued the toll free arrangement at the toll plazas up to 2.12.2016,
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.
(h) Foreign citizens will be permitted to exchange foreign currency
up to Rs. 5000 per week. Necessary entry to this effect will be made in
their passports. (Necessary instructions in this regard will be issued
by the RBI.)
Source: PIB News