Exchange of Old Currency Notes Stopped at Banks


On November 24, 2016, the central government has issued another statement declaring the end on the exchange of old currency over the counters in banks. Though, initially, over-the-counter exchange of notes was to be allowed until December 31, 2016, as of midnight of November 24, 2016, this will not be allowed. The old currency notes can now only be exchanged at the Reserve Bank of India (RBI).

However, the centre has extended the deadline for exemptions for old 500 rupee notes until December 15, 2016. As for the 1000 rupee notes deposits are allowed but over-the-counter exchange have been banned completely.

According to the new statement released by the Central government following are the exemptions and developments made:

  • December 25, 2016, Friday onwards the outlawed notes can no longer be exchanged for new ones at bank counters. This is to urge the citizens to open up a bank account.
  • The current limit on withdrawal of up to Rs. 24,000 per week per bank account and ATMs withdrawal limit of up to Rs. 2,500 a day per card remain unchanged.
  • Exemptions have been extended until December 15, 2016. This means thast places like petroleum pumps and state-run hospitals will continue to accept the old notes.
  • Water and electricity bills can also be paid using the old currency until December 15, 2016.
  • The RBI has doubled the limit to Rs 20,000 per month on digital transactions through e-wallets such as Paytm.
  • All government schools will accept old 500 rupee notes as academic fees up to a limit of Rs 2,000 per student. Central or state government colleges will also accept fees in old currency notes.
  • Citizens can now recharge their prepaid connections using old currency notes up to a limit of Rs 500 per top-up.
  • Consumer cooperative stores will also accept old 500 rupee notes to a limit of Rs 5,000 at a time.
  • The toll charges remain suspended until December 2, 2016, and thereafter, payment can be made using old 500 rupee notes.