Old Rs 500 notes will no longer be valid after December 15 mid-night: Finance Ministry

People can use old Rs 500 notes for paying utility bills or buying medicines till Thursday mid-night as the government has decided not to extend exemptions beyond December 15.

At the same time, mobile recharge facility with old Rs 500 notes will not be available. However, people can deposit invalid Rs 500 currency in their bank accounts.

“Exemptions for use of old Rs 500 notes will end on December 15 midnight,” Economic Affairs Secretary Shaktikanta Das tweeted.

That means old 500 currency notes will not be acceptable at medicine shops and for paying public utility services such as payment of electricity and water bill etc.

The government had already withdrawn some of the relaxations like booking railway or plane tickets and payment at petrol pump and toll plaza by using the old Rs 500 notes.

Exemptions for use of old Rs.500 notes will end on 15 Dec midnight.Sections of media reporting wrongly as if it's tonight.

— Shaktikanta Das (@DasShaktikanta) December 14, 2016

While cancelling legal tender of 500 and 1,000 notes on November 8, the government had allowed them to be used for utility bill payments for the first 72 hours. This deadline was extended repeatedly and the last extension was granted till December 15.

In between, the government withdrew use of 1,000 rupee notes for utility bill payments and discontinued use of even 500 ones for services like purchase of petrol and diesel at petrol pumps as well as buying air tickets at airport counters.

Also read: RBI asks banks to reserve CCTV footage to spot currency hoarders

Since the demonetisation announcement, the government has been pushing towards promoting digital transactions and has come out with a package to incentivise cashless payments.

Now petrol, railway tickets and insurance policies of PSU companies will cost less if bought through debit/credit cards or other digital modes. The government also waived service tax for payments up to Rs 2,000 made through cards and decided to do away with transaction fee for payment to the central government departments and PSUs.