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Currency Demonetisation Updates that you might have missed!

Updated on: 09 Aug, 2023 11:24 AM

Every day, there’s some new update in lines with the Currency Demonetisation. Here are the important updates that you don’t want to miss:

  1. Old notes now cannot be exchanged from banks and post office with effect from 25.11.2016. Although, they can be exchanged from the RBI offices.
  2. Rs 1000 notes have been completely demonetized. However, you can use Rs 500 notes at the following places till 15th December.
    • a) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor’s prescription;
    • at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses and airline ticketing counters at airports for purchase of tickets;
    • for purchases at consumer cooperative stores operated under authorisation of Central or State Governments and the customers shall provide their identity proof; However, the purchase from Consumer Cooperative Stores will be limited to ? 5000 at a time;
    • for purchase at milk booths operating under authorisation of the Central or State Governments;
    • for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil and Gas Marketing Companies;
    • for payments at crematoria and burial grounds;
    • for making payments in all pharmacies on production of doctor's prescription and proof of identity;
    • for payments on purchases LPG gas cylinders;
    • for making payments to catering services on board, during travel by rail;
    • for making payments for purchasing tickets for travel by suburban and metro rail services;
    • for making payments for purchase of entry tickets for any monument maintained by the Archaeological Survey of India;
    • for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;
    • for making payments towards utility charges for water and electricity only. -which shall be restricted to individuals or households for payment of only arrears or current charges. No advance payments shall be allowed;
    • for payments towards court fees;
    • 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;
    • Payment of School fees up to ? 2000 per student in Central Government, State Government, Municipality and local body schools;
    • Payment of fees in Central or State Government colleges;
    • Payments towards pre- paid mobile top-up upto a limit of ? 500 per top-up;
    • Toll payment at these toll plazas of the Ministry of Road Transport and Highways may be made through old ? 500 notes from 3.12.2016 to 15.12.2016 (as they have continued the toll free arrangement up to 2.12.2016)

Also, according to Economic Times, A disclosure scheme may be there for those who are depositing unaccounted cash in banks under demonetisation. They will have to pay 50% tax and also forego the use of their money for four years.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.