Union Government announces major changes in the demonetisation plan

The Union Government on 24 November 2016 announced major changes in the demonetisation plan after due consideration of all relevant aspects.

The decisions were taken keeping in mind the operational aspects of the Scheme relating to cancellation of legal tender of Rs 500 and Rs 1000 notes.

Highlights of the announcement
With effect from 25 November 2016, the old currency notes of Rs 500 and Rs 1000 notes will no longer be exchanged at the bank counters. This will encourage people who are still unbanked, to open new bank accounts.  

However, there are some exemptions for certain transactions that will be valid till 15 December 2016. Have a look at these exemptions:

• Payments for the transactions under all the exempted categories will now be accepted only through old Rs 500 notes.
• Payment of school fees up to Rs 2000 per student in Central Government, State Government, Municipality and local body schools.
• Payment of fees in Central or State Government colleges.
• Pre-paid mobile top-up to a limit of Rs 500 per top-up.
• Purchases from Consumer Cooperative Stores of up to Rs 5000 at a time.
• Payment of current and arrear dues to utilities will be limited to only water and electricity.
• Toll payment at the toll plazas can also be made through old Rs 500 notes from 3 December 2016 to 15 December 2016.
• Foreign citizens can exchange foreign currency up to Rs 5000 per week.