You are here: Home » News-CM » Economy » News
Business Standard

With effect from midnight of 2 December 2016, old Rs 500 bank notes will not be accepted at petrol, diesel & gas outlets & for purchase of Air Tickets

Capital Market 

After the cancellation of legal tender character of old Rs. 500 and Rs. 1000 denomination notes, the Government had exempted certain categories of transactions wherein the old high denomination notes were accepted. The Government had extended the exemption period for these categories from time to time. At present, exemptions are allowed on certain types of transactions wherein payment of old Rs. 500 notes are permitted up to a specified date.

The processes of production, dispatch and distribution of currency notes have been continuing and more is flowing into the system steadily. The transactions have also made an impressive progress and are expected to significantly improve during the coming days. Now, therefore, as options have been increasing across different sections of the economy, it has been observed that the outlets of the and gas marketing companies are better equipped to accept payments through means.

Hence, it has been decided that with effect from the midnight of 2nd December, 2016, petrol, diesel and gas outlets of Public Sector and gas marketing companies will be removed from the exempted category for receipt of old Rs. 500 bank notes. It may be noted that supply of LPG continues to be in the exempted category for payment through old Rs. 500 bank notes.

Similarly, purchase of air tickets at the airports was included initially in the exempted category. It is observed that air ticketing counters have facilities to accept non cash/digital payments. Further, enough time has been allowed for travelers to be prepared with legal tender and/or non modes of payment. It has, therefore, been decided that with effect from midnight of 2nd December, 2016, the exemption allowed for purchase of air tickets at airports through old Rs. 500 notes will be removed from the exempted category.

The other exempted categories that have earlier been notified will continue to accept old Rs. 500 notes as per the said notifications.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 01 2016. 17:17 IST