Govt stops over-the-counter exchange of old currency notes: All you need to know

The government stopped over-the-counter exchange of old Rs 500 and Rs 1000 notes from last night.

"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," the government said in a release.

"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," it added.

Extending the exemption of usage of demonetised currency notes, the government said that old notes can be used for payment in public utilities till December 15.

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. "Payments for the transactions under all the exempted categories will now be accepted only through old Rs 500 notes," the government said.

Payment of school fees up to Rs 2000 per student in central, state, municipality and local body schools in the form of Rs 500 notes has been extended till December 15.

Bringing relief to pre-paid mobile users, the government said old currency notes can be used to top-up to a limit of Rs 500 per top-up.

Purchase from Consumer Cooperative Stores will be limited to Rs 5000 at a time, the government said.

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.