New Delhi: Exchange of banned notes will continue to be available at the counters of RBI upto current limits per person as hitherto, said RBI on Friday. However such exchange facility is no longer available at other banks’ counters.
The central government on Thursday said over the counter exchange of old Rs 500, Rs 1,000 currency notes will be stopped with effect from midnight. Also, the Rs 1,000 notes has been banned from public use from now on including for essential activities listed under the exemptions. The government has also extended the deadline for exemptions, where old Rs 500 notes can be used till 15 December.
“It has been observed that over the counter exchange of the old currency notes of Rs 500 and Rs 1,000 denomination has shown a declining trend. It has further been felt that people may be encouraged and facilitated to deposit their old Rs 500 and Rs 1,000 notes in their bank accounts,” the Finance Ministry said in a release on Thursday evening.
“This will encourage people who are still unbanked, to open new bank accounts. Consequently, there will be no over the counter exchange of old Rs, 500 and Rs 1,000 notes after midnight of 24 November,” the release said.
Banks will, however, continue to accept old Rs 1,000 notes as deposits, the release said.