The Union government has stopped the allowance of exchange of old notes over the counter at banks and post-offices from yesterday midnight. Old Rs 500 notes can be used to make payments at petrol bunks, electricity department, water supply and property tax until December 15.
The Rs 500 and Rs 1000 notes can no longer be exchanged at banks, they can only be deposited. Previously, the system of inking people with indelible ink had helped reduce the rush, now the blockage on exchange of old notes will reduce the rush further.
Exceptions can be made about the Rs 500 notes, but the Rs 1000 notes cannot be exchanged. Other than depositing in banks, the Rs 1000 notes cannot be used anywhere. The Rs 500 can be used for exempted purposes, said the district administration.
Fees upto Rs 2000 can be made at government and municipal educational institutions using the old Rs 500 notes. The old Rs 500 notes can also be used to make pre-paid mobile top-ups for upto Rs 500. Foreign citizens can exchange foreign currency upto Rs 5000 per week. An entry will be made into their passports about the same.
The government has taken the decision after taking feedback about a series of issues from the announcement till the extended deadline of November 24 yesterday. They are estimating that there will be an average number of 20-30% people left with old notes who will have to open bank accounts to deposit the money.
So far, Rs 168 crore has been collected from Visakhapatnam in old notes, Rs 10 crore yesterday alone. Rs 16.5 crore has been collected as property tax and other forms of taxes till yesterday from the city. Usually, the amount of tax collected stands at Rs 5-6 crore.