Taking the next step to fight black money within India, the Centre on November 24 announced that from November 25 onward, it would no longer allow over the counter exchange of old Rs 500 and Rs 1000 notes.
Also, one can only deposit the old Rs. 1000 notes in their accounts now, and are no longer allowed to use them at any government allocated places like petrol pumps or for paying utility bills.
Making the news official, the Reserve Bank of India on November 24 issued a statement that said that over the counter exchange of the old currency notes of Rs 500 and Rs 1000 denomination is ‘slowly declining’ and that the people may now be ‘encouraged to deposit their old notes’ in their bank accounts.
With regards to some exemptions for the use of the old currency notes, the Centre said that it has now been extended till December 15, though they have tightened the squeeze as these places would only accept the old Rs. 500 notes and not Rs. 1000 notes, which would be accepted only for deposits into bank accounts.
Also one can only use old Rs. 500 notes to pay individual and household utility bills and that too just for water and electricity.
The government has though given some levy to foreign citizens, who will be permitted to exchange their foreign currency for upto Rs 5000 per week.
Though entries of these transactions would be recorded in their passports.
One can also continue to use the old Rs 500 notes for the payment of school fees, but only up to Rs 2000 and that too just in government-run schools and colleges.