Deadline extended: Railways to accept Rs 500, Rs 1,000 notes till Nov 14

On Friday, the govt extended use of defunct Rs 500 and Rs 1,000 notes for paying household utility bills, fuel, taxes and fees

Indian Railways on Friday night extended the use of Rs 500 and Rs 1,000 currency notes, which have been demonetised by the NDA government, for ticketing, onboard catering and refund of tickets by another 72 hours to November 14.

While withdrawing Rs 500 and Rs 1,000 notes from the night of November 8-9, the government had allowed use of the old currency at government hospitals, railway ticketing, public transport, airline ticketing at airports, milk booths, crematoria and burial grounds and petrol pumps for 72 hours.

The use of demonetised currency notes of Rs 500 and Rs 1,000 denomination was extended upto November 14 tonight, and all concerned in the Indian Railways have been instructed to comply with the latest instruction, a Railway spokesperson said.

However, the precautionary measures, like refund of cancelled tickets would be done through ticket deposit receipts (TDR) and not in cash among others, would continue, he added.

The railways had announced stop giving refund for cancellation of tickets in cash and instead issuing TDR.

In case of refund amount touching Rs 10,000 or above, the railways will only transfer the amount to the customer's bank account and the person concerned is required to furnish account details for receiving the amount while cancelling the ticket.

The government had demonetised Rs 1,000 and Rs 500 notes from the midnight of October 8 with the aim to fight black money and corruption, while exempting a few emergency services like hospitals, petrol pumps, railways and airports for 72 hours days up to November 11.

This list was later expanded to include payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from the government and private pharmacies, LPG gas cylinders, railway catering, electricity and water bills and ASI monument entry tickets.

The time limit set was to expire on Friday mid-night, but it has now been extended by another 72 hours.

However, the demonetisation move has attracted heavy rush at ticket counters at railway stations resulting in cash shortage. "So we are giving TDR to those who are cancelling tickets and if the refund amount is Rs 10,000 or more then it would be returned to the bank account of the person," a railways official said.

On Friday, the government extended use of old defunct Rs 500 and Rs 1,000 notes for paying household utility bills, fuel, taxes and fees and purchases from co-operative stores by another 72 hours to November 14 after banks struggled to cope with rush of people to get alternative currency.