Old Rs500 notes valid only for LPG payments post 2 December
01 December 2016
Old demonitised banknotes of Rs500 denomination, which got an extension of life, will not be accepted at petrol, diesel and gas outlets of public sector oil and gas marketing companies as well as for purchase of air tickets at airports after 2 December.
However, supply of LPG continues to be in the exempted category for the purpose of payment through old Rs500 bank notes, an official release said today.
After the cancellation of legal tender character of old Rs500 and Rs1,000 denomination bank notes, the government had exempted certain categories of transactions wherein the old high denomination bank 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 Rs500 bank notes are permitted up to a specified date.
The processes of production, dispatch and distribution of currency notes have been continuing and more cash is flowing into the system steadily. The digital transactions have also made an impressive progress and are expected to significantly improve during the coming days.
Now, therefore, as digital transaction options have been increasing across different sections of the economy, it has been observed that the outlets of the oil and gas marketing companies are better equipped to accept payments through digital means. Hence, it has been decided that with effect from the midnight of 2 December 2016, petrol, diesel and gas outlets of public sector oil and gas marketing companies will be removed from the exempted category for receipt of old Rs500 bank notes.
It may be noted that supply of LPG continues to be in the exempted category for payment through old Rs500 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 travellers to be prepared with legal tender and/or non-cash modes of payment. It has, therefore, been decided that with effect from midnight of 2 December 2016, the exemption allowed for purchase of air tickets at airports through old Rs500 notes will be removed from the exempted category.
The other exempted categories that have earlier been notified will continue to accept old Rs500 notes as per the said notifications.