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(Demonetisation) Old 500 & 1000 Rupee Notes Still Accepted For Certain Payments

Whereas, by the notification of the Government of India in the Ministry of Finance, vide F. No. 10/3/2016-Cy.I dated 8th November, 2016 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), dated the 8th November, 2016, the Central Government declared that the bank notes of existing series of denomination of the value of five hundred rupees and one thousand rupees (hereinafter referred to as the specified bank notes), shall cease to be legal tender on and from the 9th November, 2016;

And whereas, it has become necessary to notify certain exemptions for the convenience of the members of public in carrying out certain emergent and urgent transactions using the specified bank notes;

1. Now, therefore, in exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby declares that the specified bank notes shall not be ceased to be legal tender, with effect from the 9th November, 2016 until the 15th December, 2016, to the extent of transactions specified below, namely:—

(a) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor's prescription;
(b) at railway ticketing counters and ticket counters of Government or Public Sector Undertaking buses for purchase of tickets; [omitted w.e.f. 10th December, 2016 (refer note #12)]

(c) for purchases at consumer cooperative stores operated under authorisation of Central or State Governments up to a limit of Rs. 5000/- at a time and the customers shall provide their identity proof;

(d) for purchase at milk booths operating under authorisation of the Central or State Governments;

(e) for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil and Gas Marketing Companies; [omitted w.e.f. 3rd December, 2016 (refer note #11)]

(f) for payments at crematoria and burial grounds;

(g) at international airports, for arriving and departing passengers, who possess specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character; [omitted with effect from 25th November, 2016 (midnight of 24th November, 2016)]

(h) for foreign tourists to exchange foreign currency or specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character; [omitted with effect from 25th November, 2016 (midnight of 24th November, 2016)]

(i) for making payments in all pharmacies on production of doctor’s prescription and proof of identity;

(j) [omitted];

(k) for payments on purchases LPG gas cylinders;

(l) for making payments to catering services on board, during travel by rail; [omitted w.e.f. 10th December, 2016 (refer note #12)]

(m) for making payments for purchasing tickets for travel by suburban and metro rail services; [omitted w.e.f. 10th December, 2016 (refer note #12)]

(n) for making payments for purchase of entry tickets for any monument maintained by the Archeological Survey of India;

(o) for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;

(p) for making payments towards water, electricity charges;

(q) for payments towards court fees.

(r) for making payments towards purchase of seeds from the centres, units or outlets belonging to the Central or State Governments, Public Sector Undertakings, National or State Seeds Corporations, Central or State Agricultural Universities and the Indian Council of Agricultural Research, on production of proof of identity:
Provided that for the purposes of this clause, specified bank notes shall mean bank notes of the denominational value of five hundred rupees; [this proviso was omitted with effect from 25th November, 2016]

(s) for making payments towards school fees up to a limit of Rs. 2000/- per student in the Central Government, State Government, Municipality or Local Body schools;

(t) for making payments towards fees for the Central Government or the State Government colleges;

(u) for making payments towards pre-paid mobile top-up up to a limit of Rs. 500/- for every top-up;

(v) for making payments at the toll plazas under National Highways Authority of India including concessionaires, with effect from 3rd December 2016:

Provided that, with effect from 25th November, 2016, for the purposes of all clauses of this paragraph, specified bank notes shall mean bank notes of the denominational value of five hundred rupees only.

2. All establishments referred to in paragraph 1, shall maintain complete account of record of stock and sale of transactions made with the specified bank notes during the period between 9th November, 2016 and 15th December, 2016.

3. The Reserve Bank of India shall issue guidelines for exchange of specified bank notes in Nepal and Bhutan.”


Notes (Gazette Notifications):

#1 - Gazette notification S.O. 3408(E) of Department of Economic Affairs, Ministry of Finance dated 8th November, 2016 - link

#2 - Gazette notification S.O. 3416(E) of Department of Economic Affairs, Ministry of Finance dated 9th November, 2016 - link

#3 - Gazette notification S.O. 3429(E) of Department of Economic Affairs, Ministry of Finance dated 10th November, 2016 - link

#4 - Gazette notification S.O. 3445(E) of Department of Economic Affairs, Ministry of Finance dated 11th November, 2016 - link

#5 - Gazette notification S.O. 3447(E) of Department of Economic Affairs, Ministry of Finance dated 13th November, 2016 - link

#6 - Gazette notification S.O. 3448(E) of Department of Economic Affairs, Ministry of Finance dated 14th November, 2016 - link

#7 - Gazette notification S.O. 3480(E) of Department of Economic Affairs, Ministry of Finance dated 17th November, 2016 - link

#8 - Gazette notification S.O. 3489(E) of Department of Economic Affairs, Ministry of Finance dated 18th November, 2016 - link

#9 - Gazette notification S.O. 3490(E) of Department of Economic Affairs, Ministry of Finance dated 20th November, 2016 - link

#10 - Gazette notification S.O. 3544(E) of Department of Economic Affairs, Ministry of Finance dated 24th November, 2016 - link

#11 - Gazette notification S.O. 3598(E) of Department of Economic Affairs, Ministry of Finance dated 30th November, 2016 - link

#12 - Gazette notification S.O. 3678(E) of Department of Economic Affairs, Ministry of Finance dated 07th December, 2016 - link
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