Nagpur: The exemptions that were provided by the government for the use of old Rs 500 currency notes will end Wednesday midnight, the Finance Ministry informed. The banknotes ceased to be legal tender after the November 8 announcement made by PM Narendra Modi, but they were allowed to be used to pay at government pharmacies, hospitals and for public utility services to ensure the public faces the least inconvenience. All these exemptions will stand withdrawn as of midnight and those who still have the currency notes in this denomination, are now left with only one option and that is, to deposit it in their bank accounts. No other business place or any other entity will be allowed to accept these notes.
Prime Minister Narendra Modi had announced the imposition of a ban on Rs 500 and Rs 1,000 currency notes to combat black money, fake currency, corruption and even terrorism sponsored from across the border and along with this the big goal for the Indian economy was to shift the Indian economy to the cashless mode — to encourage citizens to shun cash and adopt digital payments.
The ban was followed by introduction of new Rs 500 currency notes and a new denomination of Rs 2,000 was created by the Reserve Bank of India (RBI).